Dive Summary:

• J.C. Penney has increased investments in once-profitable private brands such as Worthington, Cabin Creek and St. John’s Bay hoping to bolster sales revenues.
• JCP recently opened a new design center in the heart of New York City. The space will be geared toward private labels and will employ roughly 100 people in the 130,000 sq ft space once coveted by the likes of Facebook and Armani.
• Last year, during the Ron Johnson era, private brands accounted for only 53% of merchandise. During the height of popularity in the brands prior to the Ron Johnson era, many of the lines generated revenues of nearly $1 billion in sales revenue.

From the article:

“Women love coupons and a good sale, and in this economy every little bit helps. Ron Johnson did away with that and a lot of brand favorites. He didn’t have a clue as to what low prices are, but when you make a seven-figure salary, you can’t connect with the middle-income family trying to make ends meet. Returning brand favorites like Cabin Creek and St. John’s Bay will be a plus.”