Retailer to launch big store upgrade program based on the success of its Box One prototype
JCPenney has announced plans to launch a major store upgrade program, based on the strong performance of its new Box One prototype.
The 1019-store retail chain said it plans to spend $1 billion renovating 250 existing stores and constructing more than 170 new ones by 2009. Ninety percent of the new stores will be built off-mall.
The company will open 27 stores this year and approximately 50 stores in each of the next three years. Roughly 80 percent of the new stores will open in large markets, with populations of 1 million people or more. The remaining stores will be open in mid-size markets with populations in the 100,000 - 300,000 range.
Penney will also complete renovations on over 50 stores this year and 65-70 per year through 2009. The new off-mall stores will be 80,000 - 100,000 square feet and will use the Box One design strategy, a combination of décor, aisle spacing and departmental adjacencies. The Box One concepts stores are producing sales of $200 per square foot in their first year and are expected to reach $250 per square foot as they mature.