Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a account? Log In

JCPenney: Rightsizing and Revitalizing

Ezra Carmel
October 2, 2023
JCPenney: Rightsizing and Revitalizing

Wider challenges, exacerbated by pandemic and economic headwinds forced JCPenney to file for Chapter 11 bankruptcy protections and accelerated the retailer’s years-long rightsizing campaign. Under new ownership, JCPenney is continuing to consolidate its store fleet and is finding ways to revitalize the brand. We dove into the visitation metrics for JCPenney and some of its venues in order to take a closer look at the chain’s rightsizing strategy so far and what lies ahead as the brand continues to rebound. 

Packing a Punch

JCPenney has been shrinking its retail footprint for quite some time, and location intelligence suggests that this strategy has had some success. Since April 2023, JCPenney’s monthly year-over-four-year (Yo4Y) visits per venue have outperformed Yo4Y visits – which means that as JCPenney consolidates its fleet, the brand drives more traffic to the remaining locations. 

Despite the rightsizing, the chain still commands a relatively large share of the total visits to the mid-tier department store category. In August 2023, JCPenney was the third-largest mid-tier department store by visits share (17.6%). 

This month, JCPenney launched celebrity stylist redesigns of two of its private label brands. As new styles are added to the collections, the retailer’s first-ever stylist collaboration has the potential to boost foot traffic and share of visits in the coming months. The company is also making significant investments in customer experience and operations, and the company plans to spend over $1 billion by the end of 2025 to remodel its remaining stores – 100 of which have already been updated. The rollout of JCPenney Beauty could also help the retailer capitalize on the growing demand for beauty and self-care products by introducing fresh faces and foot traffic to the department store chain.

Making The Cut

And while JCPenney’s store closures have slowed down, the chain’s persistent visit gaps could be a sign that the retailer may undergo additional rightsizing in the future. If so, analysis of store trade areas and their overlap – the areas from which multiple venues drive visits – is one of the metrics that JCPenney might factor into the decision-making process. A large trade area overlap indicates that nearby stores may be cannibalizing each other’s visits since they have the potential to serve many of the same consumers.

Trade Area Analysis of JCPenney’s venues between January and August 2023 revealed that, in some markets, multiple stores within close proximity to each other create a high level of trade area overlap and serve many of the same shoppers. In Southern California, for example, 74.4% of the Chula Vista location’s trade area overlapped with the trade area of the National City store. And in the St. Louis, MO. region, 80.5% of the St. Louis store’s trade area overlapped with the trade areas of the Des Peres and Fenton stores. 

These relatively large trade area overlaps suggest that JCPenney may have room for further store fleet optimization – even after the already significant rightsizing the chain has undergone. Alternatively, as the company carries out its large-scale store remodeling strategy, JCPenney leadership may take advantage of these nearby locations to give each venue a unique flair with a specific focus that can allow each store to cater to a differentiated audience. 

A Penney for Your Thoughts

Rightsizing is just one of the ways that JCPenney is adapting to match current market conditions. As the retailer invests in a large-scale remodeling strategy and new beauty and fashion lines, an understanding of trade areas could reveal opportunities for different locations to curate a shopping experience for unique audiences.

‍For updates and more data-driven foot traffic insights, visit

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Free
Oops! Something went wrong while submitting the form.
Text Link
Black Friday 2023 Retail Recap
Starbucks’ 2023 Holiday Menu & Red Cup Day Performance
Turkey Wednesday 2023
Who Attended the 2023 Pickleball Championship? 
Three Surprising Holiday Shopping Trends
What’s in Store for Ulta Beauty This Holiday Season?
Best Buy and Department Stores: A Holiday Deep Dive
Discount & Dollar Stores: Strength Toward The End of the Year
The State of Off-Price Retail: Discounts Seal The Deal
Placer Mall Index Recap: October 2023 Office Index: October 2023 Recap
Retail Corridors Ahead of the 2023 Holiday Season
California, Here Gap Comes
Checking in With Home Improvement
Getting Into the Glasses Game: Warby Parker Takes Over
Fitness Positioned for a Strong 2023 Finish
White Paper Recap: October 2023
Coffee Giants Brewing Up Business
Popeyes and Burger King Lead the Way
Diving into Yum!
Looking Ahead to Black Friday 2023
Blockbusters Drive Movie Theater Comeback
Crocs and Boot Barn: Shoe-Ins for Success
McDonald’s and Chipotle's Winning Recipe
The State Of Steak: Checking in With Texas Roadhouse
Pleasant Pastimes: Pickleball Potential Proves Potent
Who’s Driving Downtown Manhattan’s Weekend Revival?
Diving into Downtown Manhattan Foot Traffic Trends
Rite Aid: Rightsizing Right
Major League Soccer: Its Die-Hard and Casual Fans
The Anchor Recap: September 2023 Office Index: September 2023 Recap
Placer Mall Index Recap: September 2023
September White Paper Recap
The Consumer Habits of College Students
JCPenney: Rightsizing and Revitalizing
Pent-Up Demand Ahead of October Sales Events
4 Strategies Retailers are Using to Drive Traffic to Their Venues
5 Key Regional Grocery Players Impressing in 2023
Upscale Kitchenware Trending Up
Costco Finds More Room for Growth
Four C-Store Chains Making an A-Grade
National Parks + Outdoor Summer Activities
Diving Into Darden: Summer 2023 Update
The Summer Event Effect
Messi: Massive in Miami
Looking Back on Back to School 2023
The Anchor Recap: August 2023 Office Index: August 2023 Recap Mall Index: August 2023 Recap White Paper Recap: August 2023
Starbucks Pumpkin Spice Latte Strikes Again
Big Scoop: We All Scream For Ice Cream
Sports Away: Lululemon & Nike’s Momentum Continues
Summer Visits Heat Up For Recreation and Outdoor Gear Chains
No CSS overwrite - July 2023 Office Index Recap
Staging - August 2023 Mall Indec
Mid-Atlantic Grocery Deep Dive
Experiential Chains Heating Up This Summer
Petco Goes Big by Going Small
Ulta Beauty: Leading the Discretionary Pack
Discount and Dollar Chains Continue to Thrive
Summer of Sports: DICK’s Sporting Goods and Hibbett Sports
Off-Price: Succeeding Into Summer
The Anchor Recap: July 2023
Superstores Maintaining Pandemic Gains Amidst Economic Headwinds
2023: Home Improvement at the Halfway Point
July 2023 Office Index Recap Mall Index: July 2023 Recap
The Taylor Swift Visit Lift
Southwestern Grocery Dive
July 2023 White Paper Recap: Halfway Point Review & Quarterly Index
Yum! Brands: Driving Dining Visits
Slurpees and Summer Movies Stimulate Consumer Foot Traffic
Cool Beans: Summer Coffee Update
Checking In on Back to School 2023
Crocs and New Balance Tip The Scales
Burger Bliss: Shake Shack and In-N-Out Stacking Visits
Chipotle & McDonald's Continue to Reign Supreme
Vibenomics and Partner to Enhance Retail Media In-Store Measurement
California Grocers Here We Come!
Marriott’s Different Audiences
Bonchon and Kura Sushi Thrive in the Fast-Casual Scene
A Shoe In: Footwear Climbs to the Top
Cheers! Raising a Glass to Beverage Retail Office Index: June 2023 Recap Mall Index June 2023 Recap – A Turn of the Tide and a Dive into Open-Air Lifestyle Centers
Local Kitchens: Redefining the Restaurant
Unlocking Urban Insights: The Value in Manhattan’s Employees
Ohio State Parks On The Rise
How is Inflation Impacting the High-Income Shoppers?
Five Fast-Growing Dining Chains
What To Expect From Prime Day and July Sales Events in 2023
The State Of Fashion: How Are Apparel Retailers Faring in 2023?
2023’s Latest Dining Success Story: GEN Korean BBQ House
The NBA Finals: A Location Intelligence Perspective
Moving the Market: The Impact of Domestic Migration on Housing Costs
Post-Pandemic Museum Update
The Darden-est Things
The Enduring Demand for Urban and Suburban Retail