J.C. Penney To Re-enter Home Appliances Business

(RTTNews) - As it grapples with sluggish sales of apparel and accessories, J.C. Penney Co. Inc. (JCP) plans to re-enter the home appliances business after a gap of more than 30 years. The company will introduce an assortment of major home appliances in 22 pilot stores, beginning February 1, 2016.

The department store chain's decision to enter the appliance market is also aimed at improving its home department sales productivity. J.C. Penney exited the appliance business in 1983 amid an increased focus on its apparel business.

Plano, Texas-based J.C. Penney 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.

"Recognizing that over 70 percent of our shoppers are women, we're 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," said Marvin Ellison, chief executive officer of J.C. Penney.

The pilot locations will launch in San Antonio, San Diego and Tampa, Florida area stores, and will feature 90 to 150 appliance models in a dedicated showroom staffed by trained associates.

J.C. Penney will carry a top-rated selection of kitchen and laundry appliances in a range of price points from General Electric Co., Hotpoint, LG Electronics and Samsung Electronics Co.

The company plans to make a broad assortment of major appliances available on its online store starting this spring. It will also leverage its J.C. Penney credit card and JCP Rewards program to provide unique customer advantages that help make new appliance ownership attainable for more families.