![]() JCPenney doesn’t break out how many sales the Sephora shop-in-shops generate, but Soltau said in an earnings call at the beginning of 2019, that “like our apparel businesses, beauty is very important to us.” But shop-in-shops have also been helpful in a few other regards. What once was a way to highlight new and exciting brands became a vehicle for aging stores to remain relevant. Due to JCP well publicized financial struggles, brand partners will be very leery to continue to work with JCP and new brand launches will dry up for sure.” In an email dated April 26 and included in court filings, Sephora CEO Jean-André Rougeot said to JCPenney CEO Jill Soltau that, “Under any scenario, (JCP bankruptcy or not)we can both see that SiJCP is at the end of the road. During its last earnings report, its fourth quarter earnings in February, JCPenney reported that comparable sales declined 7% year-over-year. But these types of partnerships have become less popular in recent years as the popularity of department stores has faded. JCPenney wasn’t alone in having a shop-in-shop arrangement - Macy’s has had a partnership with Luxottica since 2009 to operate Sunglass Hut locations within its department stores. Meanwhile, Sephora’s has grown, and it now has more than 490 stores standalone stores across the Americas, excluding the more than 650 shops it has opened within JCPenney locations. Since then, JCPenney’s brick-and-mortar footprint has shrunk, and has just under 850 stores in the U.S. When Sephora announced in 2006 that it would start opening boutiques in JCPenney stores, Sephora had just 120 stores in the U.S., while JCPenney had roughly 1,000, so the department store chain was helping Sephora reach customers where it had no physical presence. Now, the coronavirus could permanently fracture some of these relationships. It was getting harder for department stores to convinces places like Sephora that it was worth it for them to open boutiques within department stores in order to gain access to valuable new customers. ![]() ![]() Whether Sephora ends up re-opening its in-store boutiques on JCPenney’s timeline or not, there is no question that even before the coronavirus, department stores were losing their luster.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |