J.C. Penney announced plans to expand its footprint in “underserved” major markets as part of its long-range plan that also includes renovations to more than 375 locations by 2014.
The department-store chain said the store openings are part of its long-range plan, an effort to boost sales by $1 billion through expansion over the next five years.
Penney has seen its performance improve but has fallen behind Macy’s in a battle for frugal customers. Last month, Penney reported swinging to the black in its second quarter, though like rivals Macy’s and Kohl’s, it gave a cautious forecast for the current quarter.
Penney said Tuesday it will open stores next year in Daly City and Glenarden — suburbs of San Francisco and Washington, D.C., respectively — and in Dallas.
Meanwhile, renovations at more than two-thirds of its 1,107 department stores this year include 76 “major renovations,” which include 1,500- square-foot “shop within a store” boutiques with products from LVMH Moet Hennessy Louis Vuitton’s Sephora brand. Sales at locations with the Sephora offerings are trending 1.5 percent above those without, the company said in a conference call last month.
Store-within-a-store has been an emerging retailing concept as big chains look to rent out space to hot chains to boost foot traffic.
The improvements at J.C. Penney are one-third of the company’s projected $500 million of capital spending this year.
