J C Penney Company Inc (NYSE:JCP) recently announced that it shall launch the new plus-size apparel format called ‘The Boutique’ in 12 different stores on 9 October 2015. The official website of J C Penney Company Inc has also changed the name of its plus-size website to the name of format. With this concept, the company is propagating the notion of “big is beautiful.”
Benefit to J C Penney Company Inc
The new format shall remain profitable for the company because of the rising revenue in the apparel market focusing on plus-size. According to a market research company, The NPD Group, the revenue generated in this segment from May 2013 to April 2014 was as much as $17.5 billion in terms of sales. This is 5% more than the year that preceded.
The reason for rising demand of plus size apparels can be attributed to the average weight of the American women. From 1960 to 2015, the women in the U.S., on an average, have become 25 pounds bulkier. Also, 65% of the women in America are considered to be plus size, which is why entering this segment seems plausible for the U.S. retail giant. There is a huge potential that can be explored in this market. While talking to a fashion trade magazine, Women’s Wear Daily, the general merchandise manager and the senior VP of J C Penney Company Inc told that this business is their forte and the company can strive to be even better.
In order to drive traffic to its landing page ‘The Boutique,’ the company is also taking up a range of strategic initiatives.
Refurbishing the company’s look
Apart from entering this segment, J C Penney Company Inc (NYSE:JCP) is also taking up refurbishing strategies so as to offer better shopping experience to the customers. Remodelling and renovation at the stores has been taking place at the primary departmental store that sells fashion jewellery, sunglasses, fashion accessories and handbags. At the same time, it is making an overhaul at the shoe department in order to attract more female customers. As per this framework, J C Penney Company Inc is expecting renovation of its 500 centers by 2016.