As reported by the NREI (National Real Estate Investor), J.C. Penney has initiated a national drive to renovate existing stores and build new, free-standing stores as a way to increase earnings.
J.C. Penney is launching a major store upgrade program, based on the
strong performance of a new prototype. The 1,019-store chain plans to
spend $1 billion renovating 250 existing stores and constructing more
than 170 new ones by 2009, using a new, flexible “Box One” layout
formula. Company officials say 90% of the new stores will be off-mall.
On the renovation side, J.C. Penney is making over 50 stores this year and ramping up to 65 or 70 a year through 2009.
The new off-mall stores will be 80,000 sq. ft or 100,000 sq. ft., a
format the Plano, Texas-based retailer introduced with three stores in
2003 and fine-tuned at four larger stores opened in 2004. Using a
design strategy dubbed Box One, the combination of décor, aisle
spacing, adjacencies of departments within the store and other layout
factors is adaptable to a number of store sizes and will be used in
renovations and new construction alike.
With the outline from J.C. Penney, the Richmond market should not expect to see a "Box One" store anytime in the near future. The renovation of the 4 stores in the area (Regency Square, Chesterfield Town Center, Virginia Center Commons, and Southpark Mall) are much more likely, even if it will be a few years in the future before they are slated.