JCPenney struts home line in NYC

DSN Retailing Today, May 17, 2004 by Emily Scardino

NEW YORK -- While Bloomingdale's is busy exploring the nuances of Manhattan retail, companies without stores in this borough continue putting their wares on display in temporary retail outlets.

Most recently, JCPenney set up shop in the lower level of Rockefeller Center's shopping concourse to highlight its major new initiative, Chris Madden's "Turning Home into Haven" collection. The top brass from JCPenney was in attendance during the May 5 launch of this new marketing effort. It's the company's largest home category launch to date and will be backed by national television, print and radio advertising as well.

The 2,500-square-foot store, open to the public from May 6 to May 24, is very similar to the temporary retail installation Target created in Rockefeller Center last fall during NYC Fashion Week, which highlighted its then-new Isaac Mizrahi collection. The primary difference is that the JCPenney store is a showroom for consumers, where they can peruse the three design themes under the initial launch: Serene, Romantic and Adventurous. Customers can then place orders via Internet kiosks or catalog, in keeping with JCPenney's corporate strategy to become a "tri-channel retailer."

The timing marks the launch of the comprehensive, long-term partnership with decorator and best-selling author Chris Madden, which includes furniture, bedding, window treatments, bath, rugs, lamps and decor items. It also coincides with the opening of JCPenney's Elmhurst, N.Y., store, a half-hour away by subway, which is anticipated to be the most productive store in the entire JCPenney chain. This unit features one of the broadest and deepest home departments in the company as well.

The home category is an extremely important part of JCPenney's retail business, and the JCPenney Home collection brings in approximately $1 billion in annual revenues, dominating the U.S. market in categories including towels and window coverings. "[Chris Madden] adds an entirely new layer to what JCPenney has to offer in terms of comprehensive design at affordable prices--something this customer has not seen at moderate department store retail before," said Vanessa Castagna, chairman and ceo of JCPenney Stores, Catalog and Internet.

As many analysts speculate about who will become "the next Martha" in terms of retail sales, JCPenney may have already found her. Chris Madden is the author of more than 14 best-selling decorating books, has a nationally syndicated column and has national visibility from guest appearances on shows including "Oprah" and "Good Morning America."

The expertise of Madden, as Castagna emphasized, takes the home offering at JCPenney to a new level. The line took years to develop, but JCPenney plans to keep it around for years to come.

"Now we're done, but we're just beginning," said Allen Questrom, chairman and ceo of JCPenney Inc.