Sephora inside Penney makes for beautiful results
J.C. Penney has had its share of ups and downs since 2006, probably more downs if we’re being objective, but during that time there has been one positive constant – Sephora. The partnership between the two companies is as strong as ever with Sephora shops in roughly half of Penney’s 1,060 stores. Beginning today, Penney will open 25 new Sephora shops in its stores while expanding space for six others.
"Sephora is not only an important part of our center core strategy, but also a differentiator that helps set us apart from the competition," said Ivy Spargo, senior vice president and general merchandise manager for Sephora inside JCPenney, in a statement. "With the addition of these locations, we are providing clients with a unique and compelling in-store beauty experience, while generating a wealth of cross shopping appeal."
Sephora shops inside of Penney are located in the center of the department store chain’s locations. The typical unit is between 2,200 and 2,600 square feet. As with all Sephora shops, customers are encouraged to sample products and speak with the beauty consultants on staff. The six shops that are being expanded will grow to an average of 3,000 square feet and include a Sephora Beauty Studio where customers can "receive complimentary mini-makeovers."
Source: jcpenney.com
According to a Dallas Morning News report, Penney is opening Sephora shops at stores in smaller markets such as Rogers, AR, Cedar Rapids, IA, Waco and Wichita Falls, TX. Sephora’s shops inside of Penney generate three to four times the sales-per-square-foot as the rest of the store.
Discussion Questions
Do you think J.C. Penney has taken full advantage of Sephora’s appeal to drive sales within its department stores? Do you have suggestions for how Penney could better align its business to appeal to those who shop at Sephora shops inside its stores?
Poll
BrainTrust
Nikki Baird
VP of Strategy, Aptos
Kelly Tackett
Principal, 3E Insights
Sephora ought to be in all J.C. Penney stores if it’s not already there. Meanwhile J.C. Penney could do a better job attracting younger, more brand-oriented customers to the rest of the store.
I confess that I don’t get it. I think it’s great that it’s such a success. But in my local mall there is a J.C. Penney with a Sephora in it, and there is a full size Sephora not 100 yards away. With that kind of co-location, I struggle to see the draw.
I do, however, think that at least in my local J.C. Penney they have done about all they can to maximize the crossover sales — the Sephora store-within-a-store is dead center among J.C. Penney’s highest fashion relationships including Mango, The Blues Jean Bar, Liz Claiborne and Joe Fresh. And right next to accessories, too. I just don’t know what else they could do.
100 percent agree with Nikki. I would further add that given the co-locating of full-line Sephora stores in many of the same malls, that I’m not convinced that it’s the same shopper frequenting the two locations, because 1. I can’t imagine that Sephora would continue the rollout if there was substantive risk of cannibalization, and 2. The Sephora inside J.C. Penney assortment — and more importantly, customer service experience — cannot compare to that of the full-line store. I would imagine that the inserts in off-mall J.C. Penney stores perform much better.
Technology brands like Verizon and Samsung have been doing this with Best Buy, for example, for quite some time. I think it’s a mutually beneficial relationship for both J.C. Penney and Sephora in terms of driving more sales and attracting new customers that both brands wouldn’t have seen in the past.
I too believe that Sephora should be in every J.C. Penney. With that said, I would encourage J.C. Penney to look at more merchandise and advertising to their Sephora clientele. Are they doing enough? I don’t think so.
As for having a full line Sephora store in the same mall? Of course Sephora wouldn’t care because a Sephora sale is a Sephora sale, but is J.C. Penney converting their shoppers into Sephora buyers? If so, then who cares?
And that’s my two cents.
This has definitely been more of a win for JCPenney than for the Sephora brand in my opinion. Sephora probably does get extra sales from JCP customers, but is that really their target market? No.
I am a huge Sephora customer, but would never go to JCPenney for Sephora. It isn’t the Sephora brand when only 20% of regular items are available.
I think many of those advocating Sephora “inside every JCP” don’t realize how many small-town stores remain in the company, barely able to support a drinking fountain, let alone a Sephora concession. Of course that’s part of the problem. It’s hard to maintain a brand when your outlets come in all sizes, shapes, and merchandising levels…it’s a problem it shares with Macy’s, only worse.
This type of partnership should be extended into the online world as well. Integration of Sephora’s social media into JCP would benefit both.
Sephora shops inside of JCP brings more premium branding to JCP as well as more customers inside the store. What is there not to like? This is a co-branding position that has been proven and should continue to be embraced by both companies.