Retail giant makes a return to selling appliances.
JCPenney has introduced a vast range of major appliances into 22 pilot stores on the back of rising numbers in real estate entries and investments in home updates among the millennial generation (born 1980-1995).
Backed by customer research, the move aims to improve department sales productivity. The company introduced a strategic framework in 2015 that focuses on opportunities in private brands, omnichannel and increasing revenue per customer, of which appliance sales will be a key component.
“Our research shows that the female consumer is the key decision maker in the appliance purchase process. Recognising that over 70% of our shoppers are women, we are going to improve the way customers shop for appliances by building an emotional connection with the female shopper who already trusts JCPenney to furnish her home and wardrobe,” JCPenney CEO, Marvin Ellison said.
“We are excited to design a shopping experience that combines great products, strong presentation and exceptional customer service to compel new and existing customers to shop and spend more at JCPenney.”
Launching in San Antonio, San Diego and Tampa, area stores, each pilot location will feature 90 to 150 appliance models in a dedicated showroom staffed by trained and knowledgeable associates. JCPenney will carry a selection of kitchen and laundry appliances from GE, Hotpoint, LG and Samsung.
After more than 30 years, JCPenney decided to re-enter the appliance business after customer data showed that the vast majority of its shoppers own a home and are frequently searching for major appliance options on jcp.com.
“We plan to continually listen to our customers’ feedback and learn from our pilot operations over the next few months. Although our sales results in our home business are much improved, it still remains one of the least productive areas in the store. The introduction of major appliances will help us continue to significantly improve sales and gross profit per square foot in our home department, “ Ellison added.