A Nike display at JCPenney.
Courtesy of JCPenney
Michelle Wlazlo, brand CEO of JCPenney, is dressed head to toe in the chain’s brands, an advertisement for the fashion sold at the retailer. “We have done a ton of work over the years,” she says, stopping at a Worthington display at the Willowbrook Mall store in Wayne, N.J. “As we’ve done all this work with our private brands like Worthington and Arizona and our national brand partners that we’ve brought in, we’ve become one of the strongest destinations for true value and style for working families across America.”
Wlazlo says the assortment surprises consumers who visit the store for the first time, spurred perhaps by the company’s “Yes, JCPenney” campaign. “The ‘Yes, JCPenney’ campaign is trying to drive awareness that we have fashion, more than anything,” she says. “We’ve seen tremendous increases of Gen Z and Gen Alpha more than doubling their consideration of us [between April and June]. We’re even getting more consideration from Millennials and Boomers. Every year, more and more people are discovering that we’re still here and still strong.”
The retailer operates about 650 stores and has refreshed about 130 of them over the past few years, a process that is ongoing. JCPenney closed eight stores this year in California, Colorado, Idaho, Maryland, Kansas, North Carolina, West Virginia and New Hampshire as part of its strategy following its 2020 bankruptcy. “People are surprised that we’re 650 stores-strong,” Wlazlo says. “We’re committed to keeping within that store number.”
Penney’s has launched 10 brands in the last six years. In the active space, it carries Nike, Adidas, Puma, Champion, Reebok and the private label Xersion, among others. Rebecca Minkoff launched last week and JS Jessica Simpson is a strong player. Ashley Graham will be launching on Oct. 10. Hurley, Volcom and Billabong are also on the roster, “a validation of our assortment,” Wlazlo says.
Of the company’s private labels, Wlazlo says, “There’s a courage and a confidence that shows up in our private brands. We have the courage to create the differentiation. Worthington, which is a fashion brand sits across from Arizona [in the Wayne store,]
which is a teen/young adult brand. The value is exceptional, but clearly that’s fashion for a different customer. I’m really proud of the delineation our teams have made.”
The company has seen a 22% increase in JCPenney brand searches in Google and a 200% increase in organic social media engagement thanks to disruptive moments such as June’s Venice Wedding Hijack when the retailer outfitted a couple’s wedding in Venice, Calif. for a fraction of the cost of the Jeff Bezos-Lauren Sanchez wedding in Venice, Italy the same weekend.
“Men’s suiting is a juggernaut for us,” Wlazlo says. From J. Ferrar, a young adult private brand, to Stafford and Hagar, “we’re creating high quality value like no one else can,” she says. “We have fun with J. Ferrar, it’s our fashion suiting brand, and Stafford is our suiting brand. We do amazing suit events every year,” Wlazlo adds, noting that there’s 465 annual events chain-wide, to be exact. “We’ll do hundreds this fall alone. We help them with their first suit out of college and the stickiness is really strong. We love the symbiotic relationship of national brands and store brands.”
JCPenney is replacing its Sephora in-store shops with a new in-house beauty concept called JCPenney Beauty. This new department offers a wide range of brands and recently launched a Kenzo fragrance exclusively and introduced the exclusive Messi scent last year. Smashbox is one of the highlights in the department, and the Philosophy brand of skin care is bowing in JCPenney Beauty for the holiday season.
The company’s hair salons also differentiate the retailer. “Between salon and beauty services, we will do 100,000 services a week. For kids cuts we’re going to do over 100,000 kids cuts over an eight-week period,” Wlazlo says.
Fine jewelry is also having a moment. “Fine Jewelry is a fashion trend right now,” Wlazlo says. “Where we lead with the modern bride we are so strong. We’re on a seven-year growth trajectory of this category consistently within our store. We remain committed to it even with the growth of other parts of our business. We carry 3, 4 and 5-carat diamond rings. We’re seeing a lot of Gen Z gravitate to fine jewelry. Between jewelry and the salon, we have things covered.”
JCPenney’s bankruptcy, which occurred six and a half years ago, was a defining moment for the retailer. “We came out of that restructuring quite strong,” Wlazlo says. “We’ve always had a good cash position. We probably have the lowest debt of any of our peers. We’re probably the best in class. We self-fund much of our investment.” The bankruptcy, she says, was a big reset for the firm. “We’ve used it smartly to our advantage and will not let it happen again.”