JCPenney (JCP) may be struggling to stay relevant in a difficult retail environment, but the closure of Babies R Us stores seem to have given it a lifeline. In a move to capitalize on the death of a rival, JCPenney said it is opening around 500 stores that is said to be in the vicinity of the closed Babies R Us stores, starting August 30.
“The baby care business is expected to reach over $13 billion by 2021 and we are seizing this opportunity to pursue available market share and aggressively go after the baby customer with these new shops,” said James Starke, senior vice president and head of merchandising for JC Penney.
Apart from clothing, JCPenney is now adding more items to its baby department to reflect new merchandise categories.
RELATED: Toys R Us: the end of an era in the US
Babies R Us, a unit of toy retailer Toys R Us, has been closing stores since the start of the year as the parent filed for bankruptcy.
JCPenney’s financial performance has been weakening over the quarters. In the recently ended Q2, the company’s revenue declined 4.1% to $2.67 billion due to the store closures that took place in 2017. Also, the company’s CEO Marvin Ellison made an abrupt departure at a time when the company was in midst of crisis due to mounting losses and debt.
RELATED: JC Penney stock drops on weak quarterly performance and outlook
Most Popular
Important takeaways from Paychex’s (PAYX) Q2 2025 earnings report
Paychex Inc. (NASDAQ: PAYX), a leading provider of human resources and payroll services, reported better-than-expected revenue and profit for the second quarter of fiscal 2025, sending the stock higher soon
Lamb Weston’s (LW) challenges may not end soon, a few points to note
Shares of Lamb Weston Holdings, Inc. (NYSE: LW) turned red in mid-day trade on Friday. The stock has dropped 19% in the past one month. The company delivered disappointing results
CCL Earnings: Carnival Corp. Q4 2024 revenue rises 10%
Carnival Corporation & plc. (NYSE: CCL) Friday reported strong revenue growth for the fourth quarter of 2024. The cruise line operator reported a profit for Q4, compared to a loss