Home falls to 12% of sales at JCPenney
March 22, 2013-- Home Textiles Today,
Plano, Texas - Once a potent driver of JCPenney business, home declined from 18% of total sales in 2010 to 12% in 2012, according to the annual report the retailer filed with the Securities and Exchange Commission this week.
The filing also disclosed that the transformation of the home department - originally scheduled to roll out March 1, 2013 with a 20,000-sq.-ft. Martha Stewart store as its anchor - will now consist of "close to 20 shops with brand partners such as Michael Graves, Jonathan Adler and Sir Terence Conran, among others." The home department is to be revamped by early May.
In another piece of news, JCP reported with new home set will be installed in 505 of the company's more than 1,100 stores. Originally, it was thought the concept would reach around 800 stores.
In reference to the Macy's lawsuit against JCP and Martha Stewart Living Omnimedia - which seeks to prevent the sale of Stewart-branded bedding, bath, kitchen and cookware products in JCP stores - JCPenney stated: "While no assurance can be given as to the ultimate outcome of this matter, we currently believe that the final resolution of this action will not have a material adverse effect on our results of operations, financial position, liquidity or capital resources."
The company also noted that the transformation of the JCPenney from a department store format to more than 100 specialty shops may take longer to accomplish than first projected.
In addition, the company cautioned: "We may need to adjust any one or more of these strategic initiatives depending upon our customers' reactions to and acceptance of these initiatives. Any changes to our strategies could be substantial, and if implemented, could result in significant additional costs."