JC Penney Company Inc (NYSE:JCP) reported on Monday that it is launching Home Services program. This is in a mission to take advantage of the “strong housing market”. The program is going by the name JC Penny Home Services.
Details of the project
This comes when homeowners are increasingly investing a greater percentage of their disposable income to upgrade their homes. J.C.Penny will be working alongside leading manufacturing and other service providers including Trane and Samsung. The program is meant to provide ready to use services for a range of in-home repair requirements. These services include bathroom remodeling, heating and cooling systems, whole home water solutions and awnings, easy to install smart home devices as well as quick ship and installed blinds.
Consumers are spending over $300 billion per year in upgrading their homes with the resurgence of the housing market. This is because almost two thirds of the homes in the country are more than 30 years old. Marvin Ellison the chief executive officer and the chairman of J.C. Penny stated that it is a great opportunity for the company to earn increased revenue and decrease their dependence on apparel. The company is planning to mainly targeting female home owners who are key home decision makers on home issues and the occupy a capacity of more than 70% of their loyal customer base.
The company has also unveiled a digital platform at jcpennyhomeservices.com from where customers can access the range of professional services at offer and then organize an in home consultation service. A qualified and authorized contractor will then be able to assess the scope of the works and provide estimates of the total costs. The company is also launching a JCPenny Home Services credit card. This will help clients take advantage of occasional but attractive promotional offers.
J.C.Penny chose the leading service provider in each category for partnership. This was because established home owners will more often seek for established brands when they are investing in old homes. Home services provides a low-risk opportunity with high returns. The investments are also low since the company is partnering with leading providers in the market.