JC Penney Home Goods Strategy

JC Penney has launched a new home goods strategy that includes expansive home goods boutiques at 500 of their 1,100 stores.  CEO Ron Johnson calls the strategy “pivotal” to his efforts to revive Penney.

For seven years, home goods have been Penney’s worst performing category. The home category accounted for only 12 percent of sales in 2012, compared to 21 percent in 2006.

Penney’s neglected the home goods area to focus on improving its fashion collection, leaving consumers to choose from uninspired, deeply discounted goods. Penney’s new home goods section will be anchored by top designers, such as Jonathan Adler, Michael Graves, Sir Terence Conran and Martha Stewart.

The new home area will occupy up to 19,000 square feet of space, more than twice the size of a Williams-Sonoma store. Their desire is to bring in younger shoppers with attractive brands. They will also organize products by category at a variety of prices, and hold sales events and offer discounts.

Penney’s spokesperson Ellen Degeneres highlighted the JC Penney home goods boutiques on her show Thursday, May 30, by treating a family in need from Georgia to a shopping spree that replaced everything in their house from furniture to window treatments, bedding, dishes and accessories. They showed the boutique in an on-site store visit. The family was also awarded $15,000 from JC Penney to help them with expenses. Ellen’s show also gave each audience member a $100 gift card to spend at a JC Penney.