J. C. Penney has in recent years evolved into a new fashion retailer between the mass market and the department store. The addition of Sephora to create a cosmetics department
and the development of American Living as a lifestyle brand, cutting across the entire store and created by Global Brand Concepts, a division of Polo Ralph Lauren, could add a new dimension to Penney’s. It is, in a sense, the same path that Macy’s is taking with Martha Stewart and Tommy Hilfiger, and it should add excitement, something that is needed in today’s challenging retail environment. Penney’s is taking on a courageous challenge by moving upscale in a difficult retail environment.