JCP Express format debuts in downtown Chicago


JC

J. C. Penney
P or J.C. Penney customers can stop at a kiosk where they can pay credit card bills, buy gift cards and order products via a dedicated computer and have them shipped elsewhere.
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J.C. Penney Co. doesn't have a department store in downtown Chicago, but now its online shoppers have a new place to order merchandise, make returns or pick up goods.

The Texas-based retail giant recently opened what it calls a JCP Express within a FastFrame shop on West Grand Avenue in downtown's River North neighborhood. Within the custom framing and design shop, Penney customers can stop at a kiosk where they can pay credit card bills, buy gift cards and order products via a dedicated computer and have them shipped elsewhere.

This week, Penney sent postcards to parts of downtown announcing its alliance with FastFrame. The kiosk there is among 500 it has installed in a variety of independently owned and operated retail stores nationwide as it looks for alternative ways to use brick-and-mortar outlets to serve consumers who don't live near a full-service Penney store.

The chain has about 10 JCP Express locations in the Chicago area. Others include an Ace Hardware shop in Elgin that began partnering with Penney in June, and a Rudolph's Furniture store in Grayslake that carved out space for a JCP Express kiosk in November.

"It's the changing landscape of retail," said third-generation Ace owner David Ziegler, who co-owns nine hardware stores in the Elgin area, including one with a JCP Express. "My grandfather would have never believed that we'd have a J.C. Penney within our store or sell Craftsman tools."

Indeed, Hoffman Estates-based Sears Holdings Corp., which once limited its Craftsman brand to its own stores but is distributing them more widely, has also been trying cheaper brick-and-mortar methods of serving online customers. Its Mygofer.com, launched in 2009, includes a drive-through format where consumers can pick up goods ordered online.

"Every retailer is competing with the Internet," said Howard Davidowitz, chairman of Davidowitz & Associates Inc., a New York City-based retail consulting and investment banking firm. Penney's effort to offer the convenience makes sense, he said. "People are time-poor."

Ziegler said Penney approached him after the retailer closed a nearby store.

"They were looking for a place to serve J.C. Penney's online customers," said Ziegler, who estimates that the Penney presence takes up about 8 feet of his store.

A couple of his Ace employees attended weeklong training on how to handle Penney transactions.

Besides getting a percentage of online sales, "we get quality J.C. Penney customers coming into our store." During the holidays, he said, as many as a dozen Penney customers a day might visit Ace.

Penney said it doesn't have a target number for JCP Express stores but that it continues to look for "merchants who are a good fit for JCP Express, particularly in areas that have limited access to a J.C. Penney store," spokesman Sarah Holland said.

Jerry Wilson, owner of the FastFrame at 300 W. Grand Ave., said Penney learned about him through a friend who runs the FastFrame at 3720 N. Broadway St. that has a JCP Express that opened in November.

Wilson, 71, worked at Penney for seven years as a fashion merchandiser but went on to a career in information technology. After he retired 11 years ago, he opened his FastFrame shop.

He said the JCP Express concept reminds him of the old catalog stores, many of which have been closed by retailers that used to serve smaller markets without full-blown stores.

Wilson began devoting space to JCP Express in January. He said he generally gets about 10 to 12 visitors a week who don't want to drive to a Penney store, the closest of which is more than nine miles away. He figures it consumes about 10 hours of manpower a week to handle the Penney transactions.

"The cost of me doing this is offset by a small commission I receive for online sales," said Wilson, who said his framing industry has been hurt by lingering weakness in the economy.

"I anticipate that the JCP Express business will grow as people become more acquainted with it," Wilson said.

This week, J.C. Penney sent postcards to parts of downtown Chicago announcing its alliance with FastFrame. The kiosk at 300 W. Grand Ave. is among 500 it has installed in a variety of independently owned and operated retail stores nationwide as it looks for alternative ways to use brick-and-mortar outlets to serve consumers who don't live near a full-service Penney store. (Michael Tercha, Chicago Tribune / March 29

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