by Christopher Freeburn | April 30, 2013 11:35 am
JCPenney‘s (NYSE:JCP) turnaround continues to hit snags.
The unveiling of a costly refresh of the discount chain’s home goods departments has been delayed. Originally scheduled to open on May 5, the departments won’t launch until mid-May to early June, the Wall Street Journal notes.
A company spokesperson said the renovations were continuing, but cited construction delays in some stores.
Upgrading the department was part of former JCPenney CEO Ron Johnson’s plan to reinvigorate sales by renovating the chain’s stores to create numerous in-store boutiques to promote merchandise.
Johnson was also behind JCPenney’s strategy of ditching sales and promotions. After that backfired disastrously, Johnson was fired by the chain earlier this month.
The home goods department refresh hit a major obstacle when Macy‘s (NYSE:M) sued, alleging that it had an exclusive deal to sell Martha Stewart Living (NYSE:MSO) branded home products. The litigation remains ongoing.
In better news, the retailer received a $1.75 billion loan from a major Wall Street bank this week.
Shares of JCPenney fell about 1% in Tuesday morning trading.
Source URL: http://investorplace.com/2013/04/jcpenneys-home-goods-relaunch-hit-with-delays/
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