Dow Jones reports that JC Penny is planning to open 17 stores this year with the first launching in New York’s Manhattan Mall. New York’s retail sector has felt the severe crunch of the recession with landmark retailers closing up shop and foreign retailers moving in on low rents. Now, JC Penny has seized an opportunity to build a 150,000 square foot retail center in the tourist capital.
“We had wanted to be in Manhattan for awhile, were in the right financial position and the mall had just been remolded,” said Pete Sadler, JC Penny district manager. Known for “being fashion and price conscious,” Manhattan is an unlikely location for the retailer, however the retail landscape of the Big Apple is changing. We reported earlier that retailers like Brooks Brothers are being replaced with low-cost, high-style retailers like Britain’s TopShop. Although JC Penny “is pulling out all stops in terms of displays, advertising and in-store variety to bolster it’s image from frumpy to more fabulous,” it’s still a solidly middle-market department store. What does this say about the long-term impact of the recession on shopper tastes and behavior?
In this month’s DDI magazine, Paco Underhill states definitively “that we are never bouncing back.” What do you think?
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[...] grocer. Sak’s and Neiman’s have similarly struggled in recent months. Meanwhile, JC Penny’s invaded Manhattan and Sears is planning a [...]