Only a month after Federated Department Stores Inc. completed its rebranding of May stores to Macy's and Bloomingdale's, rivals J.C. Penney Co. and Kohl's Corp. are making a splash with new stores across the country.
Kohl's is hosting the biggest opening with 65 new stores. While Penney's plan to open 20 new stores may pale in comparison, it is still notable because 17 of the locations are off-mall stores, a move that almost doubles its off-mall locations. Over the next 2.5 years, about 90% of Penney's new stores are slated for off-mall sites, according to a Dallas Business Journal article.
It would seem counterintuitive to leave the mall when Federated has left "for rent" signs across the country at former May locations. However, it seems the average, busy middle-income shopper is more eager to avoid the mall than ever before, according to a Wall Street Journal report.
Although both department store chains are avoiding a head-to-head with Federated, Kohl's and Penney's are trying to woo former May customers put off by the Macy's experience. Oddly though, it seems Kohl's may be lifting some design elements from rival Macy's. All of the new Kohl's locations will sport lounges in the fitting rooms, a feature that Federated added to Macy's last year. In addition, the company will redesign older stores in Boston, Las Vegas, Los Angeles and Minneapolis to reflect the new layout, according to a Milwaukee Business Journal article.
Another strategy Kohl's is ripping from Federated's playbook is the inclusion of more house brands. New names include TV personality Rachael Ray and designer Vera Wang products and skateboarder Tony Hawk clothing. Not to be left out of the trend of exclusive brands, Penney's is introducing two exclusive Liz Claiborne labels. —Matthew Wurtzel
See story from The Wall Street Journal
See story about Kohl's redesign from The Detroit Free Press
See story about Federated from Dealscape
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