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Will Penney's 'best kept secrets' drive growth?

February 11, 2015Written by Tom Ryan

In a partnership with InStyle magazine, J.C. Penney is planning to "boldly reinvent" its 850 salons across the country under a new "The Salon by InStyle" brand.

The concept is expected to drive frequent shoppers. Penney noted salon customers typically visit the store eight times a year and spend twice as much as the average customer. The contemporary upgrades, including modern wall textures and colors, are not aimed at the blue-haired crowd but "new and younger customers."

Amiee Thomas, VP of salon at J.C. Penney, said, "As more women experience the services provided at The Salon by InStyle, it will reinforce J.C. Penney as an all-inclusive destination for head-to-toe style."

InStyle editors will work with Penney's stylists to identify fashion, hair and beauty trends and promote them in the salon's styling books. The salon will also be marketed to InStyle's magazine subscribers and social media followers.

"Beauty is a huge focus for our readers," said Ariel Foxman, editorial director, InStyle and StyleWatch, in a statement. "They spent over $2.1 billion on beauty products in the past year, equivalent to 9 percent of all spending on beauty in the U.S. We see this partnership as a way to extend our relationship with our consumer in a new, tangible way."

The salon transformation will be piloted at 15 locations across Chicago, Dallas, Miami and Los Angeles this summer before rolling out nationwide in 2016.

In a similar move, Penney in 2001 rebranded its bridal jewelry line under the name Modern Bride in an alliance with Condé Nast. Its move in 2006 to introduce Sephora in-store beauty shops has been one of its few recent successes. On the company's third-quarter conference call, CEO Mike Ullman said Sephora "continues to deliver double-digit growth, drive traffic and generate significant customer loyalty."

He pointed to Sephora and Modern Bride along with its exclusive Liz Claiborne brand, MNG by Mango, Call It Spring by Aldo and Royal Velvet as the attractions that "differentiate us from our peers."

J.C. Penney currently employs 13,500 stylists and assistants who serve nearly three million clients and provide approximately 10 million services a year. Over the past two years, it has added more than 50 artistic design leaders, which support training to stylists across salons. Ms. Thomas told The Associated Press, "We believe the salons are our best kept secrets."

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