JCPenney’s Retail Regrets Trade-In program gives shoppers the opportunity to recover from regrettable purchases made elsewhere.
COURTESY OF JCPENNEY
Building on its “Yes, JCPenney” mantra, JCPenney refined its messaging and product assortment for the “Retail Rejuvenation” campaign, which aims to help shoppers rediscover the excitement of finding items without the chaos of off‑price hunting.
The campaign includes a video showcasing six shoppers who overcame poor buying habits, employing New Age therapy language to satirize retail wellness. The piece uses tongue‑in‑cheek humor to turn anxiety about bargain hunting into a shared emotional experience.
The group leader remarks, “I am worth more than the bra I found in the cookware section.” She later asks the shopping refugees, “Will you choose an off‑price skillet with a large scratch or a Martha Stewart cookware set from JCPenney?”
The Retail Regrets Trade‑In program invites shoppers to bring any off‑price purchase they regret to JCPenney between August 28 and August 30, receiving $15 off a $50+ purchase; the items are then donated via Good360 to those in need, giving them a second life.
Michelle Wlazlo, JCPenney’s brand CEO, said the retailer is well positioned to capture share from the growing off‑price segment, though it does not aim to out‑price those retailers.
Goods And Services
JCPenney fills a market gap by offering a shopping experience that combines apparel brands such as Liz Claiborne, Worthington, and Aeropostale, services including a photo studio and a salon staffed by professional stylists, and a broad beauty selection featuring over 250 brands like Smashbox, Too Faced, and Olaplex.
Nike, added to the portfolio last year, demonstrates that JCPenney truly offers a one‑stop shop. The retailer also provides fine jewelry, including lab‑grown diamonds priced 60%–85% below mined stones, and a wide home assortment featuring brands such as Cuisinart.
Wlazlo added that JCPenney occupies a distinct niche, offering a broad range of brands, sizes, and value that sets it apart from competitors and positions it uniquely to deliver this proposition.
Earlier this year, store traffic increased 6% year‑over‑year after the “Yes, JCPenney” tagline and campaign launched. However, in its most recent full fiscal year 2025, total net sales fell more than 5% to roughly $6 billion, with Q4 sales down 8% and expanded losses.
Meanwhile, off‑price retailers such as TJX, Ross, and Burlington have shown steady sales growth, whereas JCPenney’s sales have continued to decline, dropping nearly 5% in the latest quarter.
Wlazlo noted a strong start early in the year, followed by a dip in the second quarter due to rising gas prices. She remains optimistic about the latter half, observing that the company is gaining momentum and that many customers are surprised to return after some time.
Current Analyst Consensus
Analysts consider JCPenney a speculative turnaround play, with consensus forecasts indicating substantial earnings losses and a cautious outlook, though some see opportunities in cost‑cutting and digital transformation.
The current average analyst rating is Hold, reflecting a blend of Moderate Buy, Hold, and Moderate Sell recommendations, indicating that most analysts expect ongoing negative earnings in the near term.
Nonetheless, JCPenney is pursuing several initiatives. After renovating 130 stores, it is opening a smaller‑footprint location outside Chicago that may serve as a model for future small‑store concepts.
Size Matters
Wlazlo explained, “It will be a mini store, allowing us to learn about a smaller footprint.” She noted that the former full‑size Chicago store at Ford City Mall closed when the mall shut down.
The 20,500‑square‑foot space is located nearer to JCPenney’s customer base, and Wlazlo said the company is eager to build the store from the ground up to determine optimal assortment mix and fixture placement, offering greater flexibility.
JCPenney also introduced its first cross‑brand loyalty program with Aéropostale, creating new avenues to deepen relationships across the Catalyst Brands portfolio, which includes both Aéropostale and JCPenney.
Wlazlo said the program achieved the highest cross‑shopping rates among its brands, demonstrating the power of leveraging shared customers. While Aéropostale is a great company, its stores do not sell jewelry, home goods, or beauty products.
Getting To Know You
JCPenney recently conducted two consumer surveys. Eighty‑eight percent found shopping at JCPenney easy, and 76 percent reported they were able to locate what they needed. Additionally, 77 percent said they felt reassured when visiting JCPenney, and 87 percent of budget‑conscious customers agreed the experience was worthwhile.
Marisa Thalberg, executive vice president and chief customer and marketing officer of Catalyst Brands, noted that while many assume deals come with trade‑offs, the company is playfully challenging the notion that larger retailers consistently deliver genuine value.