J.C. Penney Company, Inc. (NYSE:JCP) recently re-launched its home department called “Home Collections at JCPenney, est. 1902.” The new department now has less high priced brands including Happy Chic by Jonathan Adler and Michael Graves Design; and more lower priced private label products such as including JCP Home bath towels for $4.99, hand towels for $3.99, and washcloths for $2.99.
JCP extending the duration of events
Apart from the re-launch, J.C. Penney Company, Inc. (NYSE:JCP) also increased the duration of its ‘Home sale’ by six days. The event offers savings between 30%-60% on home merchandise. Earlier the event was planned through 3/13 to 3/16, but now both the price-cuts and JCP’s credit event has been extended until 3/22.
Apart from the home items, J.C. Penney Company, Inc. (NYSE:JCP) also focused on other additional events including the ‘Appreciation Sale’ event on 3/6-3/8, offering up to a 40% discount on apparel and an additional discount of 15% on many items, and a maximum of $100 coupons for home. The retailer also came up with Night & Day Doorbusters on 3/7 & 3/8.
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On the 9th and 10th March, J.C. Penney Company, Inc. (NYSE:JCP) also came up with its ‘Spring forward sale’ offering storewide savings up to 60% plus an additional discount of 10%-15% on numerous items. Also, a ‘Bye-Bye Winter Sale’ was organized offering up to 50% discount across the store.
Promotion level similar as before
In 2013, J.C. Penney Company, Inc. (NYSE:JCP) offered the following events; $10 off coupon on purchases above $25 (3/8/13-3/10/13), 20% additional discount to users with JCP’s credit card (3/13/13-3/30/13), a ‘Spring Break Savings’ event with $10 off on the purchase above $50 on (3/13/13-3/17/13), ‘Easter Sale Event’ starting 3/17/13 with 25% off on selected clothing items.
For the first quarter, investors are worried that extended cool weather may impact the top-line and margin for apparel retailers. However, a report from Deutsche Bank by analysts Paul Trussell and Matt Siler believe that the promotion level have been similar to previous years with few retailers going for extra promotion by extending the events. Analysts believe that retailers instead of “fight the lack of Spring weather” are waiting for the “weeks ahead of Easter” to boost sales.
Deutsche Bank analysts have a Hold rating on J.C. Penney Company, Inc. (NYSE:JCP).