Question

What strategic recommendations will you make for J.C. Penney? Please explain how you determined these strategies and what you hope will be the outcomes?

Answer 1

I recommend researching an organization with a grocery store chain. For the motivations behind showing the capability of such an organization, we use Trader Joe's as the favored accomplice. Putting a little grocery store inside JC Penney will drastically expand traffic in stores, and help better contend with other retail establishments that have started offering grocery store items. JC Penney stores with low deals per sq./ft. are a perfect contender for the additional things and offer the potential for expanded pedestrian activity.

Goals and Project Objectives:

Including Trader Joe's will build pedestrian activity within JC Penney stores. Customers search for food supplies normally, yet will in general shop in malls or independent customary retail establishments less regularly. Having a grocery store inside the shopping center makes it substantially more helpful for clients to shop at one spot rather than visiting separate areas for food supplies, but then another for dress and shoes. Selling garments, stylistic layout, housewares, and nourishment will permit JC Penney to be a one-stop search for clients and acquaint JC Penney clients with the Trader Joe's image, furnishing the organization with another client base. JC Penney's incomes should build a few times because of the enormously expanded client traffic. Placing grocery stores inside shopping malls is famous abroad and we trust it tends to be fruitful in the US also. Entire Foods, which is Trader Joe's most immediate rival, is as of now opening grocery stores around the nation in malls around the US. These Whole Foods or ShopRites are supplanting grapple stores in malls. Notwithstanding, Trader Joe's stores are a lot of littler contrasted with these stores, and generally significantly more thrifty.

This strategy will profit Trader Joe's by enabling them to effectively go up against its different rivals, Wal-Mart, Target, Whole Foods and now Kroger, who all offer dress, gourmet nourishment, and housewares. Inside two years Kroger is relied upon to outperform Whole sustenances, Trader Joe's greatest rival, and become the country's top dealer of natural and normal nourishment. The most recent Kroger store areas incorporate upscale administrations, for example, a store and arranged nourishment segment, a specialty brew and wine bar for clients to wine test and mingle and a broad offering of dress and footwear, with an accentuation on kids' apparel to show up as an alluring choice for families who might ordinarily shop at Target or Walmart, which are additionally contenders of JC Penney. Putting a Trader Joe's inside JC Penney would be a turn around of Kroger's most recent strategy by selling nourishment inside the retail establishment instead of selling garments in the grocery store. This strategy would likewise function admirably in stores outside of malls also. Of the more than 25 stores in the more noteworthy Houston territory, 10 are in strip malls or strip focuses as opposed to malls. This remains constant around Dallas-Fort Worth also. On the off chance that malls are not prepared or willing to permit such an adjustment in their stores, at that point, numerous alternatives include stores separate from malls.

Action Plan:

JC Penney ought to recognize a pilot area to test the undertaking. A perfect area is an independent JC Penney rural store with a huge parking area, close enormous populace region, yet not very near grocery stores. The income per sq./ft. in the focused on store must be beneath the organization's normal. This would be a case store like Sephora, however bigger. Trader Joe's will pay for the development and JC Penney will give the space. There are just 461 Trader Joe's around the US and there are more than 1000 JC Penney stores. Scarcely any spots would have a Trader Joe's excessively near a JC Penney store with a Trader Joe's that would rip apart the business. Numerous networks would respect an extra grocery choice, so would profit by redesigning an independent JC Penney to another variant with a grocery store.