Retail News CRM

Tag: JCPenney

  • US retailer removes Apple Pay support after two years

    US retailer removes Apple Pay support after two years

    JCPenney has finally released an official statement. This offers a technical explanation for the retailer’s decision to “suspend all contactless payment options until a later date.” While that suggests there’s a good chance Apple Pay support will be reactivated at some point in the future, JCPenney is also hinting at modest popularity for the digital wallet app in its stores, claiming the “vast majority” of shoppers continue to rely largely on “inserting or swiping their physical credit cards at point-of-sale terminals” to complete their transactions. Original article follows.

    While Apple is still selling plenty of iPhones, iPads, and smartwatches around the world, the tech giant’s “services” and software are suddenly growing at an unrivaled pace, generating revenues of nearly $11 billion between October and December 2018, up from $9.1 billion during the final three months of the previous year. Apple Pay, Apple Music, and the iOS App Store are by far the most successful and lucrative such services, at least until the Apple Arcade and TV+ platforms actually become available for end users.

    Released less than five years ago, Apple Pay powered a mind-blowing 1.8 billion transactions in the last 90 calendar days of 2018, continuing its aggressive expansion stateside and worldwide with a long overdue debut in Germany, as well as major new partnerships with the likes of CVS, Target, and Taco Bell.

    Curiously enough, another big US retailer confirmed on Twitter over the weekend its “decision to remove Apple Pay for our stores.” JCPenney’s move is certainly unusual (if not unprecedented), as there are still a few holdouts in Apple’s race to US ubiquity, but we can’t really remember anyone that supported the digital wallet platform for a couple of years to then reconsider without offering any sort of justification.

    While not the earliest supporter of the increasingly popular app, JCPenney did embrace the service back in 2017, helping it reach 74 of the top 100 US retailers by revenue as of January 2019. That included Target and Taco Bell, so we’re guessing the count is now down to 73. That’s still an impressive number, as is the 70 percent touted by Tim Cook as the platform’s target for later this year as far as all US retailers are concerned.

    Hopefully, we’ll get an explanation from JCPenney soon as to what made the department store chain pull the plug on Apple Pay support in both its retail locations and iOS app.

  • JCPenney Annual Statement shows positive numbers

    JCPenney Annual Statement shows positive numbers

    US department store JCPenney has recorded a 2.6 per cent increase in same-store sales for its fourth quarter, rescuing full-year sales to a negligible 0.1 per cent rise.

    Total net sales for the 14 weeks ended February 3 increased 1.8 per cent to $4.03 billion compared to $3.96 billion for the 13 weeks ended January 28 last year. Comparable sales increased 2.6 per cent on the same 13 week basis as the fourth quarter last year.

    Jewellery, home, Sephora, footwear and handbags were the company’s top performing categories during the quarter.

    Adjusted net income was $179 million, down from last year’s $202 million.

    Total net sales decreased 0.3 per cent to $12.51 billion for the full year, compared to $12.55 billion last year. The company said the slight decline in total net sales was primarily due to store closures last year, most of which closed in the first half of the year, and was partially offset by incremental sales for the 53rd week.

    JCPenney reported a net annual loss of $116 million, compared to net income of $1 million last year. This reduction was driven primarily by restructuring charges associated with the fiscal 2017 store closures and voluntary early retirement program.

    Chairman and CEO Marvin R Ellison, said the company was encouraged by the results for the fourth quarter and full year.

    “Through the hard work and dedication of the entire JCPenney team, we delivered our second consecutive year of positive adjusted earnings. For 2017, we improved adjusted earnings per share by 175 per cent, reduced our outstanding debt levels by over $600 million and generated over $200 million of free cash flow.

    “During the fourth quarter, we delivered our strongest positive sales comps and achieved our largest gross margin improvement for the year.”

    Ellison said in the year ahead the company will intensify its market share efforts in appliances, mattresses and furniture, while continuing to modernise its apparel assortment and omni-channel offer.

    “Our strategy and plan is clear and consistent, and we remain focused on two critical factors – to operate the business for growth and deliver profitable earnings.”

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  • Nike opens 600 outlets inside JCPenney stores

    Nike opens 600 outlets inside JCPenney stores

    Nike has opened more than 600 brand shops environments inside JCPenney stores.

    The two brands say they have teamed up due to the rapid growth of the activewear sector. The new Nike shops boast “pumped-up visual elements” featuring world-class athletes and crisp signage to help shoppers find the best gear for basketball, training and running. The shops also feature an expanded assortment of apparel and accessories from one of the world’s leading activewear brands.

    “Nike is immensely popular across all categories and with the rapid rise of activewear and athletic shoes, we want to have the best expression of Nike in any department store,” said John Tighe, chief merchant for JCPenney. “JCPenney is an activewear destination, and by partnering with a perception-shifting national brand like Nike, we can deliver both the performance and athleisure products that customers want.

    Shoppers browsing our new Nike environments will be both inspired and motivated to take their athletic wardrobe to the next level.”

    Anchored by an impressive Nike swoosh sign suspended above the shop, JCPenney has dedicated 500 sqft. of space to the activewear giant in a prominent location within the men’s department. Motivating graphics of athletes adorn the shop walls and updated fixtures, combined with dedicated mannequins, present the merchandise in an inspiring light. The iconic Nike logo is emblazoned throughout the shop and popular activities, including basketball, training and running, are called out with new signage to help customers shop quickly and easily. The JCPenney and Nike teams worked closely together to test various visual elements at a JCPenney store in Portland, Oregon, to create the inspiring environment for the men’s department, now available in 600 locations across the country. Similar visual elements are available in select stores for women and kids.

    The Nike selection at JCPenney will be featured throughout JCPenney marketing, including weekly sales circulars, direct mail, email and social media. Nike complements a robust assortment of fitness and athleisure brands available at JCPenney, including the retailer’s private brand, Xersion and an exclusive brand, MSX by Michael Strahan.