Categories Retail

JCPenney aims to capitalize on Babies R Us closure

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

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top