The chains tried to court millennials, alienating their most loyal shoppers in the process.
By Abha Bhattarai Abha Bhattarai Reporter covering the retail industry Email Bio Follow May 24 Christie Mowry, a 43-year-old mom in Missouri, loves shopping at J.C. Penney.
J.C. Penney and Kohl’s — which have toggled between courting moms and millennials — both posted disappointed earnings this past week. And Dress Barn, frequented almost exclusively by middle-aged working women, announced Tuesday that it was closing all 650 of its stores. New tariffs, he added, are likely to make matters worse for middle-of-the-road retailers. Executives at J.C. Penney, Kohl’s and Macy’s this past week warned that the trade war may soon cut into profits as they pay 25 percent more to import items such as makeup, handbags and leather jackets. At the same time, cash-strapped consumers are likely to cut back on clothing and shoes as they pay more for groceries, toilet paper and other essentials.
J.C. Penney’s troubles go back nearly a decade, when the company brought on Ron Johnson, formerly head of Apple’s retail business, to revamp its stores. He got rid of coupons and tried to turn the company’s tired locations into sexier enclaves filled with “stores within a store” featuring brands such as Levi’s and I Jeans by Buffalo. It was a fast failure: Sales dropped by about 30 percent, and longtime shoppers swore off the company.
The company is now opening 500 new baby shops and replacing its appliance and furniture departments with more clothing. It also brought on a new CEO, Jill Soltau, who has yet to outline her strategy for the company.
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