J.C. Penny to Stop Selling Home Appliances

[tomturbomatic]

<h1 tabindex="0">J.C. Penney to stop selling major home appliances</h1>
 

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<span class="truncate" title="Jordyn Holman and Matt Townsend">Jordyn Holman and Matt Townsend</span>

<time datetime="2019-02-06T17:00:00.000Z" data-always-show="true">2 hrs ago</time>

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Gaming stocks are getting killed after earnings

 

J.C. Penney plans to stop selling major appliances as new CEO Jill Soltau overhauls the troubled department store chain.

 

 

 

The retailer will also end sales of furniture in U.S. stores and will sell the category online. These changes take effect on Feb. 28, the company said Wednesday.

Soltau, who stepped into the role in October, began a mission to streamline the 116-year-old retailer, closing underperforming stores and clearing out slow-moving goods to kick-start sales and improve margins. The company made the move to “better meet customer expectations, improve financial performance and drive profitable growth,” it said in a statement.

“Optimizing the allocation of store space will enable us to prioritize and focus on the company’s legacy strengths in apparel and soft home furnishings, which represent higher margin opportunities,” it said.

Alex Arnold, a managing director of the consumer practice at investment bank Odeon Capital, said he wasn’t surprised by the move.

“Penney’s was trying to throw their hat in that ring, but it doesn’t jive with the DNA of the company as customers think about it,” he said.

Former CEO Marvin Ellison had led the move into appliances in 2016, and the strategy was costly to implement because the company had to train employees or hire new ones who could sell the products. The idea was to fill the void left by Sears Holdings Corp., which hadn’t yet filed for bankruptcy but was already reining in store count.

But J.C. Penney wasn’t alone. Home Depot Inc. and Lowe’s Cos. expanded their appliance offerings, and even Bloomingdale’s jumped into the market late last year -- adding some high-end LG Electronics Inc. products, like refrigerators and washing machines.

J.C. Penney would eventually push appliances into about 600 stores. Meanwhile, furniture, including couches and bedroom sets, was being sold in about 100 locations. It’s now pulling most furniture, except from select Puerto Rico stores. Mattresses will continue to be available in more than 450 physical locations, it said.

Trent Kruse, J.C. Penney’s head of investor relations, said on a conference call with analysts in November that appliances were among product categories that underperformed in the third quarter.

J.C. Penney shares pared earlier losses and were little changed at $1.35 at 11:34 a.m. in New York. The stock has dropped about 20 percent since Oct. 15 when Soltau came on as CEO.

Same-store sales, a key gauge of a retailer’s health, slumped 5.4 percent in the three months that ended Nov. 3, far worse than the 0.8 percent decline projected by analysts.

 

[DADoES]

 
I haven't been to the JCP at "the mall" in the larger shopping-city down the way in years ... have not seen the appliance dept since it came back into being.  They have an occasional appliance circular distributed via the newspaper there.

 

[frigilux]

Not surprised JCP has decided to jettison major appliances. Seemed like an odd strategy in this day and age.

I continue to buy all my clothes (save for black Dockers) and undergarments from JPC online, so am hoping they hang in there. I know how everything fits me, so clothes shopping is a breeze.

 

[whatsername]

That was quick.

 

[iowabear]

Wow - they hardly gave it a chance.  Doesn't sound like there will be any bargains as this article from the Dallas Morning News states they didn't actually own any inventory outside the display models in the stores.

 

Quote:

"Penney owns all the appliances that are in its stores, but not the appliances it sells. Customer purchases are filled by the manufacturers: GE, Samsung, LG and Frigidaire. The way the contract was structured, Penney needed high sales volumes to make it worthwhile."

J.C. Penney pulls the plug on previous CEO's home appliance strategy

J.C. Penney confirmed that it has decided to exit the major home appliance business on Feb. 28 and may reduce store space in the process.The...

www.dallasnews.com

 

[fan-of-fans]

Never saw an appliance department in the JCPenney here. I do remember receiving some flyers in the mail, but it wasn't an often thing.

 

[tomturbomatic]

Appliances at Jean Claude Penny's never even seemed expected in the 70s when I last saw them. Even housewares at Penny's seemed an awkward fit with some flowery slow cooker stuck in with the linens. I always saw it as more of a soft goods store than a full department store.

 

When I was under the delusion that I wanted to live in Florida, I started buying clothes at Penny's and some sheets once and liked what I bought, but then Florida went maniacally republican and I began recovering from the grief over my brother's death and the Penny's near me closed so that was the end of that.

 

Penny's was smart not to stock appliances. If you go to buy a Miele, the store does not stock or deliver it, but offers concierge service of arranging delivery and installation but providing neither.  Even when I bought mine, and they were floor models at the end of the model run, standard practice was that dealers would arrange the sale, but the goods were delivered from New Jersey. Both stores deducted the delivery charges from New Jersey on the machines.

 

[golittlesport]

When I was in college (more years ago than I care to recall, LOL) I worked at JCP in their shoe department. That was back in the glory days of department stores. JCP sold clothing, furniture, electronics (TVs and stereos,) small appliances and housewares and major appliances. Appliances were their own Penncrest or JCPenny brand, just as Sears only sold Kenmore in those days. Washers and dryers were sourced from Hotpoint and vacuums from Hoover. They sold just about anything you could imagine except for food and gasoline. And of course, their catalog rivaled Sears'.

 

[tomturbomatic]

I should have stated that when I shopped at Penny's, it was late 80s, early 90s, long after the catalog days and sadly, decades after their Treasure Island experiment. We loved our Treasure Island store. Of sad note, but noteworthy still, the TI closest to us was, supposedly, the first store of the Home Depot chain.

 

[moon1234]

Have never seen Penny's as anything except a clothing retailer. They used to sell "nicer" things. Now it is mostly trash. Once in a great while my wife or daughter will find a nice dress, but the mens department has been poor for a LONG time.

Macy's and Nordstrom's are "ok" if I need something in a pinch, but I have started buying most of my pants and shirts from Brooks Brothers and there is very noticeable difference in quality. If I HAVE to shop at Macy's then I will usually look for something from Ralph Lauren or Tommy Hilfiger. I won't pay full price, but if it's end of season and there is a Macy's coupon or some such, then it's an "ok" deal.

Penny's house brand stuff is no better quality than Target or Kohl's. Both of those latter stores tend to be in better shape than Penny's as well. Our two local Penny's haven't seen a facelift in probably 25-30 years.

It used to be you could find a Harris Tweed jacket or some nicer sweaters/shirt's at Penny's, but I have not see that in a LONG time. It's all teeny bopper wear once or twice and its junk stuff.

My wife get's most of my kids school uniform stuff from Lands End, GAP or Old Navy. When my now 19 year old daughter started school we got a lot from Penny's. Now they don't even sell that stuff anymore.

Last paragraph removed by webmaster due to forum rules violation. Please see forum rules here: https://www.automaticwasher.org/cgi-bin/TD/TD-DISCUSS-O-MAT.cgi

 

[DADoES]

 
I do recall when JCP had their Penncrest appliance line, although at the time I didn't recognize it being rebadged Hotpoint/GE.  The dept was on the 2nd floor ... up the escalator, head forward a ways then turn to the left.  Major appliances on the left (I was shooed away by salespeeps a few times, LOL), TVs/audio on the right.

My first component stereo system (MCS) was from JCP in 1978.  I still have and occasionally (rarely) use the turntable.

 

[fan-of-fans]

Actually, JCPenney still had the catalog through the 80s and 90s. I know they had it at least until 2007 if not later, I remember seeing them for sale in the stores.

I too have always seen them as a softlines store though. The only hardlines the JCPenney here sells are small appliances, luggage and vacuum cleaners. And they added a toy section a while ago.

Since the JCPenney reopened here after Hurricane Irma, it seemed that the items for sale tend to have scaled back from formal wear. To where a lot of it is thin t-shirts and lower end/lower price items like t-shirts or shorts, even in the winter when you'd expect to see more coats, sweaters and flannels. They still sell that stuff, it just seems like the lightweight cheap stuff is what they stock more of.

I used to prefer JCPenney's Stafford dress shirts because they breathe well and launder well also. But the latest ones I have gotten about two years ago seemed thin and very stuffy to wear.

 

[kate1]

I know for a fact that Penney’s had their catalog well into the mid to late nineties, my siblings and I got ALL of our school clothes every single year from that catalog. I distinctly remember that giant phone book sized catalog and then picking up our order at the local store and having our portrait taken at the same time. My mother bought all of her own clothes from them as well as towels, sheets, curtains, etc. for the house. I never knew they carried appliances though, i don’t think the store here ever carried them (they may have way back when before the mall was built and they were a freestanding department store, I should ask my parents if they remember). It would be nice if I could buy my kids clothing at Penney’s and carry on the tradition, the quality just isn’t what I like though. I get most of their things from Land’s End, Primary, Hanna Andersson, and LL Bean. My husband and I get most of our things from LL Bean, Duluth Trading Company, and Land’s End. For nicer things I like Boden but they’re pricy. I don’t mind spending a little more for clothing because I keep our wardrobes very minimalistic and with a large family, the kids all pass things down to the younger ones when they outgrow them.

 

[daveamkrayoguy]

What we’re seeing is a history repeating itself, only this time there’s still Sears but no Ward’s...

(& for the record, wondering what got removed from a previous Post, & why... Obscinity or profanity?)

— Dave

 

[mattl]

Our two local Penny's haven't seen a facelift in pro

I thought they did all the stores.  My local Penny's went substantially up-scale a few years back with the remodel, marble floors through out, up-scale lighting, new racking, better layout. 

 

I do a moderate amount of shopping at Penny's, I hit the clearance racks at the end of the season, got Docker and Izod shirts for $5-8, they hold up well.  Never shop at Macy's, priced too high for what the product is and I was a long term employee of Hudson's ( Marshal Fields later on...) they took over.  Plus, I resent the demise of the regional stores that had a unique character.

 

Appliances never seemed a good fit at Penny's, the department was never staffed when I walked through, they did have a nice assortment of products, but so does everyone else.  They brought nothing to the table.

 

 

[jamiel]

Yeah, they were only interested in trying to get a little of the mall-based appliance business which Sears had/has and they brought nothing to the table. In the old-days, they never had appliances through the catalogue, only in metropolitan clusters of stores (and almost never in the old pre-1950s stores even if those were in metro areas). They did sell appliances at the JCP at the Palm Springs Mall (wouldn't have thought that store big enough). Likewise with furniture, in metro stores (but not every metro area---they were thin in some cities in the 80s/90s).

 

[moon1234]

I don't see why my post was removed? I mentioned that JC Penny went downhill due to their homosexual ads on Mother's Day and Father's day in 2012. Many newspapers said this was the exact reason Ron Johnson was sacked. He refused to acknowledge that this is what caused a 50% drop on their stock share price in a six month period. They have never fully recovered from this as evidenced by all of the things they are trying (Appliances, Stores within Penny's like Sephora, Coffee Bars, Every Day Value items, etc.) Why is this considered homophobic, etc?

I made no slurs or other derogatory attacks. I stated that this was the reason our family stopped shopping their as well. How can stating facts that the secular media reported and that we, as a family also agree with, be considered a violation of the rules?

Here is what happened to their stock and the dates:

February 2012 - JCP announces Ellen DeGeneres as their new spokesperson.
Stock price:
$41.32 

May 2012 - JCP launches catalog ad featuring two "gay" moms.
Stock price $35.67 

June 2012 - JCP launches catalog ad featuring two "gay" dads.
Stock price $25.83 

July 2012 - JCP stock rated "junk" by S&P. JCP fires marketing exec.
Stock price $20.02 

That is six months to have HALF your equity go up in smoke. JC Penny shoppers did not want to see these types of social justice ads. It is not the "values" that JC Penny shoppers embrace. JC Penny paid a very big price for marking lifestyle vs products. The simple fact is if Penny's would have marketed their products instead of people then they would not be in the same situation they are today.

That is not homophobic it is simply realizing that when it comes to business you need to market your products and not people (unless your selling people or their image, etc.)

 

[pulltostart]

Excuse me, but

The simple fact is if Penny's would have marketed their products instead of people then they would not be in the same situation they are today.

 

If the same ads had featured straight/heterosexual couples, Penny's would have still been marketing people.

 

lawrence

 

[iheartmaytag]

I walked through their "appliance" depertment

It was sorely lacking any choices, and was in JC Penny tradition, overpriced.

I think it was a venture that they tried in their attempt to stay alive in the retail business, hoping to capture some of the traffic when Sear's exited many of the malls. Offering only Samsung and LG appliances severely limited their appeal.

Since Penny's has been predicted to be the next retail bankruptcy, their exit from large appliances was probably a good move on their part, as they can focus on smaller, less costly inventory.

Now if they would just work on their customer service. My 14 year old daughter was treated very rudely at the make up counter. The way the woman acted, knowing that she is probably on commission, I could have understood if she had been a little more decent towards my child.

Maybe Penny's and other retailers should review who has the most disposable income, it's usually the teens.

But back to appliances, they would probably have done better if they had staffed the area with employees that could have helped the customers. Reading the post above, maybe they were afraid a gay would buy a washer from them. Some believe they should still wear the pink triangle, at least in public to protect the "decent" citizens.