published on February 6, 2019 - 1:22 PM
Written by ,

(AP) – J.C. Penney will no longer be selling major appliances, ending its three-year run.

The Plano, Texas-based department store chain also says on its company blog that furniture will only be available on its website and store locations in Puerto Rico.

The move marks the first major initiative by the company’s new CEO Jill Soltau to try to turn around J.C. Penney’s business. The company has been trying to claw its way back after a disastrous reinvention plan in 2012 by its former CEO Ron Johnson, who dramatically cut back on temporary promotions and brought in new brands to attract young shoppers. Since then, the retailer’s business has stabilized but is still weak as it struggles to figure out its identity.

Major appliances will be discontinued as of Feb. 28. J.C. Penney says it wants to go back to focusing on its heritage of fashion and home furnishings, which carry higher profit margins. The company says it’s completing a new store layout, including the reduction of space previously dedicated to appliance and furniture showrooms.

Under former CEO Marvin Ellison, J.C. Penney returned to selling major appliances after 33 years to decrease its reliance on fashion and respond to shifting consumer habits. It also was hoping to capitalize on the woes of Sears, which had ceded market share in this category to new players like Home Depot and Best Buy. Sears filed Chapter 11 bankruptcy last October and its fate is uncertain.

Appliances, however, are not a big traffic driver since shoppers buy them every few years.

Penney is set to report its fiscal fourth-quarter earnings results on Feb. 28.


e-Newsletter Signup

Our weekly poll

Are you willing to travel for business again?

Loading ... Loading ...

Central Valley Biz Blogs

Popup
shares

3/5

Article views

remaining

Sign up icon

To continue website access to

TheBusinessJournal.com

please create a FREE account OR login here.

1/5

Article views

remaining

SKIP THE POP-UPS
For only $69 for one 1-year you will receive the Print edition along with EVERYTHING The Business Journal has to offer digitally, PLUS you will have unlimited 24- hour a day access to view articles at

TheBusinessJournal.com

Use Promo Code

*New Subscribers Only

Digital and Print

XX Days Remaining

until you can view 5 more free articles

Sign up icon

Want access? Subscribe now & save $20 OFF.

Use Promo Code

WEBSUB20

* NEW SUBSCRIBERS ONLY