JC Penney Is Moving Back Into Appliances

J C Penney Company Inc JCP announced on Tuesday that it will be selling appliances once again after a 30-year hiatus in an effort to attract more consumers.

Shares of JC Penney were trading down by 5.71 percent at $6.61 on Tuesday at the time of this publication.

Millennials, Real Estate And Home Improvement Trends

With an increase in Millennials entering the real estate market, and the rise of homeowners looking to invest in updating their homes, JC Penney will be introducing an assortment of major appliances in 22 pilot stores beginning February 1.

The decision reinforces the company's decision to re-enter the appliance market.

JC Penney's strategic framework in 2015 focused on opportunities in private brands, increasing revenue per customer and omnichannel, all of which will be key components in the re-vamped appliance environment.

Related Link: JC Penney Appoints Joe McFarland As VP Of Stores

The Female Consumer

"Our research shows that the female consumer is the key decision maker in the appliance purchase process. Recognizing that over 70 percent of our shoppers are women, we're going to improve the way customers shop for appliances by building an emotional connection with the female shopper who already trusts JCPenney to furnish her home and wardrobe," said Marvin Ellison, chief executive officer for JC Penney.

The pilot stores will be launched in Tampa, San Antonio and San Diego. Each location will have 90 to 150 appliance models in a staffed showroom. JC Penney expects to offer a "top-rated selection" of laundry and kitchen appliances.

In efforts to further increase its shopping appeal to female consumers, the appliances will be "strategically adjacent" to popular home categories along with display models that are styled in inspiring lifestyle vignettes for visualization.

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