The July 31 opening of JCPenney’s first store in Manhattan marked more than the brand’s debut on the island. It may be the beginning of a new development strategy.
Speaking to analysts in last Friday’s earnings call, Mike Ullman, JCPenney’s chief executive said the fashion retailer is looking at similar opportunities in other metro areas. His rationale, according to a report in The Wall Street Journal, focuses on changing demographics. Suburbia has been hard hit by recession, with home vacancies rising as a result. That’s meant a contraction in the raw number of people living near malls as well as pullbacks in spending.
Though the article pointed out that the retailer isn’t about to abandon the mall market, it is looking to position stores in major population centers—especially at a time when some prime real estate has attractive pricing. Inner city locations are high on the list of targets, according to the article. No details were disclosed on the exact destinations or a time line for store openings.