Yahoo Finance JCPenney Enhances Women’s Merchandise with Boutique+
JCPenney Impressing with Merchandising Strategy and Initiatives
Plus-size merchandise
JCPenney (JCP) is making efforts to increase its store traffic by expanding its merchandise offerings. On April 12, 2016, JCPenney announced the launch of Boutique+, the company’s first plus-size private fashion brand for women.
The Boutique+ collection will make its debut in 500 stores and at the company’s online shopping site effective May 1. JCPenney will partner with Project Runway’s first-ever plus-size winner designer, Ashley Nell Tipton. Tipton will serve as the brand ambassador and will design two upcoming capsule collections for Boutique+ for the fall and holiday seasons.
Women, a key customer group
Women customers are a key demographic for JCPenney. Women’s apparel alone was the largest merchandise category and accounted for 25% of the company’s fiscal 2015 net sales.
The SPDR S&P Retail ETF (XRT) has ~1% exposure to JCPenney. Rivals Macy’s (M), Nordstrom (JWN), and Dillard’s (DDS) derived 23%, 31%, and 22% of their sales, respectively, from women’s apparel in fiscal 2015.
Demand for plus-size clothing
With its Boutique+ brand, JCPenney will be able to cater to the huge demand for plus-size clothing. According to the NPD Group, the percentage of US teens considering buying plus-size clothing grew significantly to 34% in 2015, compared to 19% in 2012.
As cited in the Chicago Tribune, the NPD Group noted that the US plus-size apparel market grew by 3% to $20.4 billion in the year ended February 2016.
Other department stores offering plus-size clothing include Nordstrom, Kohl’s (KSS), and Macy’s. Eloquii, a popular plus-size online-only retailer, raised $15 million in Series B funding in April 2016. Eloquii plans to capture the growth opportunities in the plus-size apparel market. Eloquii’s revenue grew by 165% in 2015.
Along with the Boutique+ collection, JCPenney also announced the launch of its new in-store concept, called The Boutique, in ~200 stores. These store-within-stores will range in size from 980–2,800 square feet and will offer plus-size clothing. The Boutique will also offer casual sportswear, denim, and activewear, as well as a collection of handbags, fashion jewelry, and accessories.
Aside from offering plus-size clothing, JCPenney is also taking other initiatives to enhance its merchandise. We’ll discuss this in the next part of our series.
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