J C Penney Company Inc (NYSE:JCP) is planning to provide bulk supplies to hotels.
The retailer says that it is seeking to become a bulk supplier for hotels, innkeepers and property managers. It made this decision following the success of its return as a seller of home appliances. It has also been pushing sales of other home furnishings, such as bedding and mattresses.
J C Penney Company Inc Chairman and CEO Marvin Ellison notes that there is strong growth possibility for the company in the U.S. hospitality industry. He points out that the industry is worth $200 billion a year.
Ellison says that J C Penney Company Inc decided to go into the business after noticing that hotel companies were already ordering large amounts of supplies from its online store. To better accommodate these customers, JCP is launching its B2B program, which will be staffed by an outside sales force with experience with these types of customers.
J C Penney Company Inc’s decision to become a B2B supplier for the hospitality industry is a positive sign for the company. Sarah Diesker, the Vice President of Growth and Business Development at data analysis company Ansira, says that JCP was able to identify where it was performing well and better focus on it with this move.
Maureen Mullen, the chief strategy officer at consulting firm L2, also says that the decision to enter the B2B industry is a good one. He notes that it allows the retailer to focus online sales without directly competing with online retail giant Amazon.com, Inc. (NASDAQ:AMZN), reports MarketWatch.
JCP stock was up 1% as of Friday morning.