|JCPenney Announces New Store Openings and Renovation Plans|
Intensified Renovation Program Designed to Transform In-Store Experience
PLANO, Texas, Sep 28, 2010 (BUSINESS WIRE) --
J. C. Penney Company, Inc. (NYSE:JCP) announced today that it is expanding its presence in major markets which are currently underserved by the Company and offer great potential for expansion due to their demographic profiles. This initiative is a key component of JCPenney's Long Range Plan, which is expected to drive substantial sales gains over the next five years. It will begin with the opening, in 2011, of three new JCPenney stores in Daly City (San Francisco), Calif., Glenarden (Washington, D.C.), Md., and Dallas.
The Company also announced the transformation of the JCPenney in-store experience through its store renovation program. This program is designed to highlight JCPenney's most innovative new brands and concepts, including creating a more exciting shopping environment for customers. As part of the program, the Company has made significant in-store enhancements at more than 750 stores this year, including 76 major renovations. By 2014, the Company plans to complete major renovations at a total of more than 375 stores.
"Across America, there are markets that offer great potential for JCPenney due to their significant moderate income populations who value the style, quality and affordability that we offer and would seek out our private and exclusive brands. Due to our strong financial position, we will be able to intensify our presence in these markets in order to capitalize on this opportunity in the years to come," said Myron E. (Mike) Ullman, III, chairman and chief executive officer. "This work, in combination with our ongoing store renovation program, will enable JCPenney to deliver on our goal of being an industry growth leader by maximizing sales productivity in our existing locations and expanding our customer base in key markets."
New Store Openings in 2011
In the spring of 2011, new JCPenney stores will open in Daly City (San Francisco), Calif. and Glenarden (Washington, D.C.), Md., and in the fall of 2011 a new store is planned to open in Dallas. These are all markets where JCPenney has an existing presence and strong track record of success. These three store locations mark the initial step in JCPenney's plans to open new stores through 2014 in support of a key objective of the Company's Long Range Plan -- to generate a total of $1 billion in sales growth through new store expansion over the next five years.
Transforming the In-Store Experience
By October, JCPenney will have made significant enhancements to the in-store experience at more than 750 store locations in 2010. The Company is investing a total of $160 million in these improvements as part of its $500 million of expected capital expenditure for the year.
As part of the 76 major renovations in 2010, each of these locations will now have a 1,500-square-foot Sephora inside JCPenney beauty boutique, bringing the total number of Sephora locations to 231 by year-end. Major store renovations are primarily in California, Florida, Illinois, Maryland, New York and Texas.
Additional enhancements made to store locations include features such as dedicated shop-within-shops for new brands such as MNG by Mango and Call it Spring by ALDO, and new fixturing for the rollout of Liz Claiborne across 30 categories. They also include the installation of new Findmore interactive in-store fixtures, which allow customers to access and purchase from jcp.com right from the selling floor. Additional improvements have also been made to increase energy efficiency across these stores and allow shoppers to discover all that JCPenney has to offer in a fun, easy and convenient shopping environment.
JCPenney is one of America's leading retailers, operating 1,107 department stores throughout the United States and Puerto Rico, as well as one of the largest apparel and home furnishing sites on the Internet, jcp.com, and the nation's largest general merchandise catalog business. Through these integrated channels, JCPenney offers a wide array of national, private and exclusive brands which reflect the Company's commitment to providing customers with style and quality at a smart price. Traded as "JCP" on the New York Stock Exchange, the Company posted revenue of $17.6 billion in 2009 and is executing its strategic plan to be the growth leader in the retail industry. Key to this strategy is JCPenney's "Every Day Matters" brand positioning, intended to generate deeper, more emotionally driven relationships with customers by fully engaging the Company's approximately 150,000 Associates to offer encouragement, provide ideas and inspire customers every time they shop with JCPenney.
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which reflect the Company's current views of future events and financial performance, involve known and unknown risks and uncertainties that may cause the Company's actual results to be materially different from planned or expected results. Those risks and uncertainties include, but are not limited to, general economic conditions, including inflation, recession, unemployment levels, consumer spending patterns, credit availability and debt levels, changes in store traffic trends, the cost of goods, trade restrictions, changes in tariff, freight, paper and postal rates, changes in the cost of fuel and other energy and transportation costs, increases in wage and benefit costs, competition and retail industry consolidations, interest rate fluctuations, dollar and other currency valuations, risks associated with war, an act of terrorism or pandemic, and a systems failure and/or security breach that results in the theft, transfer or unauthorized disclosure of customer, employee or Company information. Please refer to the Company's most recent Form 10-K and subsequent filings for a further discussion of risks and uncertainties. Investors should take such risks into account when making investment decisions. We do not undertake to update these forward-looking statements as of any future date.
SOURCE: J. C. Penney Company, Inc.
J. C. Penney Company, Inc.
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