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Title: J.C. Penney finds profit in Africa.
Subject: J.C. Penney Co.
Date: 921101
Source: American Demographics, Nov92, Vol. 14 Issue 11, p12, 1/2p, 1
illustration
Author: Larson, Jan
Abstract: Tells how the J.C. Penney Company is selling authentic African
clothing, housewares and art. Boutiques opened one year ago in 20
markets with large black populations; Large market outside
mainstream America; J.C. Penney expanding boutiques to 100 sites
this fall; Anglos and Latinos buy African clothes for simple
construction and comfort.
AN: 9301200151
ISSN: 0163-4089
Note: This title is not held locally
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[Go To Citation]
Magazine: AMERICAN DEMOGRAPHICS, NOVEMBER 1992
Section: BUSINESS REPORTS
Retail
J.C. PENNEY FINDS PROFIT IN AFRICA
SOMETIMES THE SIMPLE APPROACH is the best approach. The J.C. Penney Company
is building customer loyalty and sales by following the most simple rule of
business: find a need and meet it.
Black Americans want products that reflect their cultural heritage. To meet
that need, Penney's opened boutiques that sell authentic African clothing,
housewares, and art. The boutiques opened one year ago in 20 markets with
large black populations. The results have been overwhelming, says Joe
Hunter, a Penney's manager in Carson, California. Sales came in at twice the
expected levels, and the store had difficulty keeping things in stock. Black
customers "were delighted that they could buy African apparel at a national
department store," he says.
"We're realizing that there is a very large market outside mainstream
America that is worth our going after," says Hunter. He expects the African
boutique in his store to do $200,000 in business in the first year.
Nearly 30 million blacks live in the United States, and that figure is
expected to rise 29 percent by 2010. In 1989, 39 percent of black households
had incomes of $25,000 or more. J.C. Penney is expanding its boutiques to
100 sites this fall, says Bruce Ackerman, operations manager for
merchandising.
The bold, bright colors found in African garments appeal to a wide range of
customers, not all of whom are black, says Ackerman. Blacks may buy the
clothes and housewares to identify with their heritage, but Anglos and
Latinos buy them for their simple construction and comfort.
"I've never had this type of response to a new line of merchandise," says
Hunter. When the boutique opened, customers flooded his office with thank
you phone calls. The lesson, he says, is that "you can't stay with typical
lines and do well. If you sell merchandise customers are willing to buy,
then recession or not, you're going to do well."
~~~~~~~~
By Jan Larson
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Source: American Demographics, Nov92, Vol. 14 Issue 11, p12, 1/2p, 1
illustration.
Item Number: 9301200151
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