Sears, JCPenney push off-mall stores west

DSN Retailing Today, Nov 22, 2004 by Doug Desjardins

RANCHO CUCAMONGA, CALIF. -- The sprawling suburb of Rancho Cucamonga was ground zero last month for two of the nation's oldest retailers and their new-format stores. Both Sears and JCPenney opened their first off-mall stores in California in this city of 140,000, just 40 miles east of Los Angeles.

Sears opened its fourth Sears Grand store in the U.S. on Oct. 25, and JCPenney followed with the opening of its eighth off-mall outlet on Oct. 28. Though the stores are just a few blocks apart, representatives from both chains said they weren't aware of the dual opening and chalked it up to coincidence.

"We carry a different mix of merchandise, so we're not direct competitors anyway," noted Ken Dall, Los Angeles district manager for JCPenney.

The Rancho Cucamonga outlet is in a new shopping center on the outskirts of the city and anchors a village-style cluster of upscale shops and restaurants. The store covers 133,000 square feet on two levels--making it the largest off-mall JCPenney--and features several pilot designs that are being introduced to older stores.

The most distinctive feature is bright new signage that makes it easier for customers to navigate the aisles and find major brands such as Worthington, Stafford and its own JCPenney Home Collection.

"We're in the process of rolling this out to all our stores," said JCPenney spokesman Quentin Crenshaw. "The new signage really brightens our departments and calls out our major brands." Like the prototypes before it, the Rancho Cucamonga store also has wider aisles and brighter lighting.

The store's full-service salon is also a departure from a traditional JCPenney and features 22 stations that offer hair styling, pedicures, facials and other spa-type services. "We're trying to tailor our merchandise mix and services to the demographics here," said Dall.

While JCPenney's new outlet is structured along the lines of a traditional store, that's not the case with the Sears Grand that looms on the horizon about a half-mile south. The massive 180,000-square-foot store stands alone in a section of town that's under development, making it appear even larger.

The store has two entrances--setting it apart from its predecessor in Las Vegas, which has one central entrance--but has the same wide "boulevard" aisle running down the center. Apparel is the focus along the boulevard with large sections dedicated to junior, misses, men's and boy's.

That aisle leads to the impressive CE section in the rear that's loaded with big-screen plasma and flat-screen TVs prominently displayed and visible from all over the store. The section also taps into a new product category for Sears with several aisles dedicated to DVDs and CDs.

Alongside is a permanent toy department that marks Sears' foray into the year--around toy business. "We sell toys on a seasonal basis at our stores, but this department is permanent and non-seasonal," explained Julie Krueger, director of marketing for Sears Grand.

Another new addition for Sears is a food section at the left entrance of the store. "Our main goal is to stock basic items like eggs, milk and snacks so that we can save our shoppers from making an extra trip to the store," said Krueger. The section does have one oddity: an entire aisle dedicated to wine that's headed by a large endcap.

On the other side of the store is an outdoor nursery with hundreds of live plants, a category it tested at its Las Vegas store. "There's a real demand for plants out here, and the climate allows us to have an outdoor section year-around," said Krueger. The store also has a row of shops near the checkout counters including a cafe, optical shop and a portrait studio with one-hour photo service.

Both stores represent efforts by Sears and JCPenney to move away from mall-based outlets that have been a cornerstone of expansion for several decades. JCPenney has more than a half-dozen off-mall stores opening this fiscal year while Sears has its next Grand store scheduled to open in Austin, Texas, in 2005.