Like most retailers, J.C. Penney (NYSE: JCP) is struggling. Its stock is more than 50% off its 52-week high and the company recently announced it intends to slow its expansion plans.
On Monday, the company announced the launch of Dorm Life, a "comprehensive modern lifestyle brand for today's design-savvy young adults." As the incredibly uncreative name would suggest, the collection is aimed at college students looking to furnish dorm rooms. Sample prices include "$3.99 for a bath towel, $24.99 for window panels and $29.99 for a table lamp to $39.99 for a comforter, $59.99 for an ottoman and $149.99 for over-the-bed storage."
J.C. Penney is not going to succeed or fail based on a line of student-oriented furniture -- it's far too big of a company -- but it's hard to see how this brand will work. The prices are substantially higher than similar offerings from Target (NYSE: TGT), and I think that Target probably has stronger brand equity among college students than J.C. Penney. The name seems wrong too -- the average J.C. Penney shopper is neither young nor hip (from what I've seen in the stores), but that's who it needs to attract with this line, and this whole idea seems to lack spunk -- even the website is putting me to sleep.
If this is how J.C. Penney plans to catch on with younger shoppers, I'm not impressed.
J.C. Penney makes a move into dorm furniture
Posted Jul 8th 2008 10:50AM by Zac Bissonnette
Filed under: Products and services, Launches, Consumer experience, Competitive strategy, Marketing and advertising, Penney (J.C.) (JCP)
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