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.
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.