Can Martha Stewart Make Shopping at Penney's 'a Good Thing'?J.C. Penney (JCP) is betting on the nation's iconic domestic diva to help reinvent the staid department store concept, and in turn, how America shops.

The retailer announced its plans this week to launch Martha Stewart home and lifestyle retail shops within most of J.C. Penney's 1,100 stores by February 2013.

Stewart's in-store shops, which will offer not just her products, but "on-site know-how and advice,"are a bold first move from Ron Johnson, who became CEO of J.C. Penney last month and has set out to do nothing less than redefine department stores.

While grandiose claims from CEOs are nothing new, industry-watchers are taking Johnson's pronouncement pretty seriously. That's because Johnson knows a thing or two about developing ground-breaking retail formats.

He joined J.C. Penney from Apple (AAPL), where he was the creative force behind the company's highly successful and influential Apple Stores.

Before that, Johnson was a key architect of Target's (TGT) "mass-tige" (mass-prestige) formula. In the late 1990s, he helped bring the chain exclusive collections from high-end designers -- a tactic unheard-of at the time for a discount retailer. Target's string of partnerships went on to include lines from Isaac Mizrahi, Missoni and Jason Wu, among others.

Adding the Flavor of Apple


Stewart, of course, is no stranger to retail partnerships.

She sells Martha Stewart-branded home goods at Macy's, a line of paint, cabinets and faucets at Home Depot, and pet products at PetSmart, among other lines.

When it comes to details about how the new Stewart stores will help remake the shopping experience, J.C. Penney is being tight lipped. Corporate communications manager Kate Coultas would only say: "The Martha Stewart experience at J.C. Penney will allow consumers to engage with the brand in a way they never have before."

There have been whispers that the Martha Stewart shops at J.C. Penney could take a cue from Apple Stores' Genius Bars.

But the retailer's stated plans to create "destinations" for home and lifestyle products in an "inspiring" and "educational environment" suggests J. C. Penney will find new ways to impart Stewart's decorating, crafting and cooking prowess to consumers to create -- as the currently popular buzzword in retail suggests -- an "experiential" shopping experience.

Still Courting Middle America

Beyond the wider goal of reshaping how America shops, Johnson is focused on simply reviving J.C. Penney, which has been in a sales slump, lagging behind competitors such as Macy's (M) and Kohl's (KSS).

"Johnson needs to reinvent the J.C. Penney, brand -- and indeed the entire department store experience -- to make it relevant for how women shop, work and play today," Craig Johnson, CEO of retail consultancy Customer Growth Partners, tells DailyFinance.

Industry pundits speculated that Johnson would brush J.C. Penney with Target's upscale, hip vibe. But his decision to tap Stewart, who built her home decorating empire by appealing to mainstream tastes, signals the chain will continue to court Middle America, always J.C. Penney's sweet spot.

Stewart herself seems to think Johnson can pull off the makeover. "Ron Johnson is a true innovator and someone who has been fundamentally redefining the retail experience," she said in a statement. "I am greatly impressed with his plans for changing an American classic, J.C. Penney, to make it a very new and different shopping experience."



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linda

If JCPennys start selling anything of Martha Srewart I will no longer shop there. I didn't at K-mart when they had her. In fact when her crap was there I called it "The Martha Stewart Store".

December 12 2011 at 8:12 AM Report abuse +1 rate up rate down Reply
alfredschrader

Get the JC Penney waffle maker, only don't put waffles in it. Instead, shape two thin pieces of pizza dough into the same size. Place one round into the machine. Top with grated mozzarella cheese, then top with the other round of pizza dough and close the machine. When it blinks, take it out and pour marinara sauce into the waffle dimples. Cut into slices. Result is crispy grilled pizza with long gooey strings of cheese. It's yum, trust me....Al-

December 12 2011 at 6:49 AM Report abuse +1 rate up rate down Reply
Mia

I would love to walk into JC Penney and actually find clothing that suits me. Most items in the Ladies' section are geared to retirees or those who don't care how they look. I think the junior department has a wide selection.

December 12 2011 at 4:27 AM Report abuse +1 rate up rate down Reply
Psalm 103:1

GREAT!! LOVE MARTHA!!. JCP CAN benefit iF JCP MANAGEMENT will do its own homework. It was Martha who attracted shoppers in all income groups, although some pretended they didn't shop at KMART, just as the same liars deny shopping at WALMART and DOLLAR STORES today!! Beginning with KMART, Martha introduced beautiful and affordable line of quality products - variety of same for interior and exterior.areas of the home. Martha gives a myriad of ideas and helps. Whether or not one uses them is personal choice. Some got it, some don't. Martha Stewart has it, and as long as she is willing to teach, share and help, some of us will continue to learn from her.

December 12 2011 at 4:19 AM Report abuse rate up rate down Reply
DARLENE

JCP is doing just fine without Martha Stewart. Why fix what ain't broken?

December 12 2011 at 2:35 AM Report abuse +1 rate up rate down Reply
sunklst

I guess it is step up from K-mart for her.

December 12 2011 at 12:19 AM Report abuse +1 rate up rate down Reply
Bruce

I sort of doubt that Marth can do anything good for Penney's. Look at the HORRENDOUS job she did with K-Mart!

December 11 2011 at 11:37 PM Report abuse +1 rate up rate down Reply
Larry

Why hire a convict like Martha Stewart? There are much smarter crooks out there.

December 11 2011 at 10:53 PM Report abuse rate up rate down Reply
Kathryn

NOt a fan of her or her boring products...yawn...

December 11 2011 at 10:37 PM Report abuse -1 rate up rate down Reply
savemycountry911

LOL. I see others don't like ole Martha any better than I.

December 11 2011 at 9:57 PM Report abuse rate up rate down Reply