It's been a tough few years for J.C. Penney (NYSE:JCP) but CEO Mike Ullman is planning to lure in the company's core customers by reviving in-store brands that were once loved, then lost.
After Ullman's departure as CEO 2011, his successor Ron Johnson wiped out several of the J.C. Penney's private-label merchandise, a move that eventually led to suffering sales. Since Ullman returned as CEO in April, he helped bring back the populuar St. John's Bay apparel line as well as JCP Home and Cooks, both of which have already been a big hit with shoppers. In the coming months, J.C. Penney also plans to reintroduce its Ambrielle lingerie, a customer favorite that was discontinued in 2009.
As J.C. Penney invests resources into bringing back former brands, it will also be getting rid of newer ones. Ullman noted that jcp menswear, Joe Fresh clothes and some Martha Stewart-designed home furnishings will be eliminated as part of the inventory restructurings.
"What we now need is to edit things out that didn't resonate sufficiently," said Ullman.
J.C. Penney is hopeful that the renewed outlook on private-label goods will continue the company's streak of improved performance. In November, the retailer reported a 10 percent rise in same-store sales for the second month in a row. In October, J.C. Penney announced that its comp-store sales rose 0.9 percent in October, marking the company's first monthly same-store sales gain since December 2011.
For more see:
-This Reuters article
For more see:
J.C. Penney Comp-Store Sales Rise 10% in November
J.C. Penney's Q3 Loss Wider Than Expected As Sales Fall
J.C. Penney Reports First Monthly Sales Increase Since 2011
J.C. Penney's Calls it Quits With Martha Stewart
J.C. Penney Launches Disney Shops in 565 Stores