JCPenney is spending $1 billion on store and online upgrades in latest bid to revive its business

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JCPenney says it plans to spend more than $1 billion by the end of 2025 in a bid to revive the storied but troubled 121-year-old department store chain.

The chain's core customers are budget-conscious families, whose median income ranges from $50,000 to $75,000. They've been particularly hit hard by higher costs basic items and high interest rates, making borrowing on credit cards and taking out a mortgage more expensive.

The company filed for bankruptcy reorganization in May 2020 after the pandemic-induced temporary closing of stores put the already struggling retailer deeper in peril. The retailer has been rebuilding its beauty business after Sephora announced a deal to leave the chain for rival Kohl's three years ago. As part of its overhaul, it has been highlighting beauty products that cover a wider range of skin tones. One-third of its customers are of color. The company said that more than 50% of its beauty brands are either owned by females or people of color.

Rosen said the changes have helped increase the number of repeat visits of existing customers to both stores and online. More than 50 million customers have visited JCPenney in the past three years, he said. After about five years of declines, it’s now seeing customers coming to JCPenney more frequently — a 5% increase. As for its beauty departments,25% are new customers, he noted.

 

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