JCPenney has big plans for growth

(Image source: JCPenney)

Two years into a turnaround, JCPenney (NYSE:JCP) hosted its first analyst day to outline the retailer's strengths and growth opportunities. The event is ongoing, but already CEO Marvin Ellison seems to have accomplished his No. 1 priority when joining JCPenney: save the company.

Ellison inherited a retail organization still reeling from former CEO Ron Johnson's dramatic changes. It had been stabilized somewhat by interim CEO Myron Ullman, but Ellison has since begun reporting positive financial results and said the company is headed for a full-year profit.

Today, JCPenney has identified key categories to grow, including plus-size apparel, home and its private-label assortment.

In the next three years, the company hopes to grow private label to roughly 70 percent of its assortment, according to TheStreet.

The retailer is also focused on growing its online business. Today e-commerce is just a small portion of its business with the majority of customers being exclusive brick-and-mortar shoppers. Still, those who do shop both channels spend up to twice as much as the store-only buyer.

Appliances also represent a big opportunity for JCPenney, which added the category to 500 stores this year, following a short test. The market could hit $50 billion overall by 2020, and JCPenney wants the shoppers who are left behind as Sears closes stores.

For more:
- see this story at TheStreet