Today's Kids Don't Collect Penney's

J.C. Penney's popularity among young consumers has dropped 44 percent in the last five years, says The Zandl Group, New York-based trends analyst and marketing consultant. Only 5 percent of young shoppers now make the Plano, Texas-based retailer their usual place to buy clothes.

According to the Zandl report, Penney's decline in popularity is a result of increased competition from a wide variety of retailers who give young consumers great style as well as great prices (e.g., Old Navy). By the mid 90s, we were also starting to move into a “fashion” cycle after a lengthy “basics” phase.

“If Penney's is intent on cultivating a youthful customer base,” says Zandl, “it will need to develop a strategy that takes into account that young consumers'favorite places to shop are specialty retailers with high-energy environments, timely product assortments, youthful staffs and customers.”

Zandl recommends what it says are “some radical ideas”:

á Contemporize juniors environments. Create boutiques with separate entrances, playing the kind of music, at the right decibel level, that gets young shoppers energized to spend.

á “Cast” for its staff.

á Develop signature lines with designers who have track records but currently have more style than capital (the Target approach). With “value shopping” all the rage, designers like Cynthia Rowley, Isaac Mizrahi or even Kenneth Cole might find it cool to serve the masses by hooking up with J.C. Penney's.

á Actively stay on top of youth market trends using unconventional methods (such as taking fashion cues from music videos).

á Turn merchandise frequently. (The move to four times a season is a step in this direction.)

á Develop an advertising campaign that both showcases Penney's stylish clothes but also has the kind of creative twist that gets people talking and piques curiosity about the “new J.C. Penney's.”