Macy’s, Inc. (M), J.C. Penney Company, Inc. (JCP): Is Joe Fresh Already Going Stale for J.C. Penney?

Like Joe Fresh, many of the other new shops seemed empty. For example, I visited the Levi’s denim bars in each J.C. Penney store, and never saw more than one person there (often they were deserted). By contrast, some of the more established shops (pre-2011) seemed relatively busy. The Sephora boutiques had a steady, albeit slow stream of customers. Furthermore, the Call It Spring by Aldo shoe collection was by far the most popular area of the store in two of the locations I visited. It was the only part of the J.C. Penney stores that seemed to rival Macy’s, Inc. (NYSE:M) in terms of customer interest and foot traffic.

Foolish conclusion
While there may have been an initial burst of curiosity and customer interest upon the launch of the Joe Fresh shops, the buzz may have faded quickly. Traffic was slow or non-existent in the Joe Fresh shops I observed. The brand might not have enough customer recognition in the U.S. to drive new customers to J.C. Penney Company, Inc. (NYSE:JCP) stores today.

On the other hand, the stronger performance of more established shops like Sephora and Call It Spring by Aldo provides a ray of hope. It may take time to ramp up sales in some of the new shops, particularly when the brands are new to J.C. Penney. Unfortunately, Penney does not have the luxury of time in light of the heavy rate of cash burn recently. Therefore, J.C. Penney needs to find a way to accelerate customer acceptance of Joe Fresh at its stores.

The article Is Joe Fresh Already Going Stale for J.C. Penney? originally appeared on Fool.com.

Fool contributor Adam Levine-Weinberg has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.