News

J.C. Penney targeting college living furnishings to drive sales

June 13, 2017

J.C. Penney is hoping a full-throttle focus on college kids' desire for furnishings will help spur sales though it's going to be a challenge given hefty competition.

The retailer is launching 500 'dorm shops' within stores, highlighting everything a college student needs — from bedding to appliances, according to a Dallas Business Journal report. The college furnishings industry is reported to be about $6 billion, according to the National Retail Federation. The shops will also feature private brand items from J.C. Penney's Cooks brand of products and Home Expression, noted the report.

"Customers come to us specifically for these trusted brands, allowing J.C. Penney to increase gross margin potential, while providing exceptional value for budget-minded shoppers," John Tighe, J.C. Penney’s executive vice president and chief merchant, said in a statement.

One industry watcher believes it could be a big boost to J.C. Penney.

"Target … offers those things separately, but not in a shop together," Ric Anderson, managing partner at The Retail ThinkTank, told the Journal. "If (J.C. Penney's) values and prices are as good or better, then they could do better because it make it easier for the customers to shop."