JCPenney provides first peek at NickZone program - Nickelodeon department

DSN Retailing Today, Oct 27, 2003 by Emily Scardino

NEW YORK -- It's not often that the Dora, Blue and SpongeBob brands are pronounced in the same breath as Haggar, Arden and Bali. But all that may soon change following last month's launch of a Nickelodeon department at JCPenney.

The new NickZone store-within-a-store program, with centerpieces that include such well-known characters as Dora the Explorer, Blue from "Blue's Clues" and SpongeBob SquarePants, will help the mid-tier retailer make its children's department a prime destination for the more than 81 million households tuned in to Nickelodeon. By yearend, some 600 boutiques will open across the country.

"We are excited about the opportunity that these zones--and they really are large, distinctive zones--will provide in our larger stores," said Christi Byrd Smith, a JCPenney spokeswoman. Because the NickZones are sized at 500 square feet to 700 square feet, they are only being placed in stores with enough space to amply show case merchandise.

That Nickelodeon has scored the ultimate in retail placement is well warranted. No longer a newcomer to children's entertainment--Nickelodeon turns 25 next year--and it has been the highest-rated basic cable network in the United States since 1995, according to the company.

Signs for the shops feature both the NickZone and Nickelodeon names, boldly plastered from ceiling to floor. Though signs emphasize hit animated characters, the most emphasis is given to Nickelodeon's bright orange signature "splat," accented with its hallmark "slime" green color. In fact, a holiday gift with purchase that only kids could love will be a package of Nickelodeon's green "gooze" slime. The NickZone concept is all about serving up the complete Nickelodeon experience.

"Toppers around all the merchandise units will create an environment that ties together a number of different properties and product categories, from T-shirts, to accessories, from gift items to plush," said Maureen Taxter, vp of retail and business development at Nickelodeon.

The NickZone shops, located in Penney's children's wear departments, will cross-merchandise licensed hardlines and softlines. Product will include a mix of exclusive and non-exclusive merchandise, including a broad assortment of apparel based on Nickelodeon's most popular properties du jour. One of the biggest pushes into holiday '04 is Dora the Explorer, especially popular with the Hispanic customers JCPenney actively targets. Blue's Clues is another emphasis, still strong with the preschool set. And SpongeBob SquarePants, the company's golden goose, remains exceptionally popular with the entire family and has a starring role in current assortments.

No matter which properties are tracking well, JCPenney and Nickelodeon have the flexibility to quickly adjust the level of each property and SKU.

"Labeling the shops with the Nickelodeon brand gives us the opportunity to cycle in new merchandise depending on which properties and products are performing best," added Taxter.

Numerous Nickelodeon characters have already successfully translated into myriad product categories. However, this is the first time that the Nickelodeon name has been used at retail to call out a collection of merchandise, as it does for the shows that run on the channel.

Nickelodeon's marketing muscle, on television and in print magazines, is a major asset to both this Viacom Int'l subsidiary and JCPenney. According to Taxter, the top children's cable network will call out both key items and the NickZone shops as destinations at JCPenney, a highly effective way to directly target end consumers. Exclusive merchandise is in development for holiday and for 2004, though there will be crossover with items that have proven best sellers elsewhere.

In-store marketing efforts will also continue. To kick off the launch of NickZone, a live-action version of Nickelodeon's SpongeBob SquarePants character visited four New York stores the weekend of Oct. 11, including units in the Bronx, Staten Island, Garden City and Valley Stream. The visibility of NickZone will increase greatly into holiday once all 600 of the stores are outfitted. This one-stop-shop could be a major coup for both JCPenney and Nickelodeon. It adds a healthy dose of fun to the floor that a core audience of 2- to 11-year-olds is very familiar with, and merchandise that has a powerful "gimme" factor. NickZone looks like a touchdown for all parties involved.