J. C. Penney Targets $200 Billion Hospitality Industry with B2B Strategy
May 19, 2017,
Citing its long history of designing and sourcing high quality home textiles along with its recent re-entry into the major appliance market—and hotel operators’ large volume purchases of bedding, bath and window treatments from its website—the retailer feels it’s well positioned to expand into the hospitality segment.
“While we continue to take steps to improve our apparel strategy and assortment, we see our Home Refresh initiative as a great vehicle for growth and differentiation,” said Marvin Ellison, chairman and CEO of J. C. Penney. “The U.S. hospitality industry represents approximately $200 billion [according to STR Inc. 2017 HOST Almanac] annually and a significant opportunity for J.C. Penney to gain market share and drive increased revenue per customer with major appliances and a renewed focus on soft home goods.” The J.C. Penney B2B solution also provides custom window treatments, furniture and mattresses.
The J. C. Penney B2B program will leverage the company’s nationwide fleet of brick-and-mortar stores and its vast supply chain network to meet the needs of small business owners and connect with local communities. Ellison said it is staffing an outside sales force for this business.
“Our entry into the B2B program reinforces our home refresh initiative, while providing new and innovative ways to achieve sustainable growth and profitability,” Ellison said. “Our broad assortment of private brands in soft home give us a unique cost and value advantage in this new and exciting space.”
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ALSO IN THIS ISSUE:
- TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
- Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
- N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.