DC joins Vans at JC Penney

There’s lots of talk about JC Penney both outside and inside the industry as the discount retailer works to transform itself into a specialty department store.

The company is on the hunt for new brands to carry, and even sent buyers to Agenda last week.

A table of DC Ts at JC Penney

Vans has done business with JC Penney for years, and DC Shoes launched there this month in time for back to school.

I stopped by JC Penney at Main Place mall in Santa Ana this week to check out both Vans and DC’s presentation there, and to see the first new brand shop to debut under new CEO Ron Johnson – a dedicated Levi’s store within a store.

When it comes to DC footwear, I only saw three styles at the store – a much smaller selection than other brands such as Puma, Adidas, Converse and Nike.

It was in the young men’s apparel section where I saw the most DC goods – a large table filled with Ts in addition to racks with hoodies, wovens, tanks and shorts.

DC Shoes at JC Penney

DC was grouped with a large selection of Vans apparel and adjacent to goods from Hart and Huntington and Zoo York.

Both the apparel for Vans and DC looked to be different from styles found at a typical core store.

DC executives declined to comment about the addition of JC Penney to its distribution. Parent company Quiksilver is in the midst of an aggressive five-year growth plan that includes doubling the size of DC to about $1 billion in annual revenue.

DC may not be the only industry brand that is joining JC Penney. Word on the street is that there is another action sports brand that will debut there next year, though the name of that brand has not been announced.

Vans Ts at JC Penney

Rusty, which launched a segmentation strategy a few years back under the La Jolla Group, sold to JC Penney before Ron Johnson’s plan went into effect, and I did not notice Rusty product at the one store I visited this week.

Vans, one of the most successful brands in the industry, has a disciplined segmentation strategy that includes selling at stores such as JC Penney and Kohl’s, mall stores such as Journeys, PacSun and Foot Locker, and core stores and fashion boutiques.

See Page 2 for details and photos of Ron Johnson’s plan to transform JC Penney

Under CEO Ron Johnson, who created Apple retail stores and was critical in revamping Target’s merchandise, JC Penney is changing its pricing strategy, its customer service philosophy and most importantly, the brands and goods that it carries.

A model of the Levi’s shop-in-shop from the JC Penney website. The one I saw in Santa Ana was not quite as elaborate. Photo courtesy of JC Penney.

His vision is to create 100 brand shops within JC Penney, and brands that have signed on include Vivienne Tam, Lulu Guiness, Betseyville by Betsey Johnson, DREAMPOP by Cynthia Rowley and Canadian brand Joe Fresh.

The first store to debut is the Levi’s shop, and the one I saw in Santa Ana definitely stood out with its extensive selection, modern racks and layout, and a dedicated Levi’s specialist who was friendly, knowledgeable and energetic.

The much hyped iPads that are part of the Levi’s shop which allow customers to find which styles fit their bodies best, were not out however, and two empty iPad stands looked tacky. The staff had forgotten to charge them the night before, the sales girl said.

The presentation for both Vans and DC will likely change and improve when more shop-in-shops debut next year.

A model of The Streets concept that is coming to JC Penney stores. Photo courtesy of JC Penney.

JC Penney will also add what it calls The Street, wide pathways through the store where new merchandise can be discovered, and where shoppers can sit on couches or grab a coffee.

The Square, in the middle of the store, will be a community space for seasonal events such as spring yoga classes, visits with Santa and special seasonal items during the holidays, and light seasonal food and beverages, according to JC Penney’s website.

Johnson describes this year as the transitional year, with a return to growth in 2013. Many of the shops and new innovations will not debut until spring and later. The company reported this morning that second quarter comparable sales declined 21.7%, and the loss per share was 37 cents, wider than expected

However, the company’s stock was up 5% to $23.33 this morning after Johnson told investors initial results for the new merchandise in stores have been encouraging.