JCPenney’s Decline and Resurgence: A 14-Year Journey
JCPenney has experienced a tumultuous journey over the past 14 years, with a stark decline in revenue impacting its once-stalwart reputation. In 2010, the company boasted revenues nearing $18 billion. However, by 2023, those revenues plummeted to $7.2 billion, further slipping to a painful $6.6 billion by fiscal 2024, as indicated in financial statements reported to the SEC.
The shifts in profitability were equally alarming; JCPenney reported a net income profit of $30 million in 2023, only to swing to a staggering loss of $177 million in 2024. Neil Saunders of GlobalData articulated the sentiment, stating, “Although JCPenney has initiated attempts to reinvent itself, 2024 marked another year of missed opportunities, failing to demonstrate that the company is on a sustainable path to recovery.”
Innovative Marketing Strategy on the Horizon
Despite the dismal outlook, a transformative marketing strategy spearheaded by Marisa Thalberg—a celebrated marketer inducted into the CMO Hall of Fame in 2022—promises a new dawn for JCPenney. Launching in April, the “Yes, JCPenney” campaign aims to re-introduce the company’s image to the public—and the results are already making waves.
Gaining Visibility
Only a month post-launch, the campaign resulted in a marked surge in interest in the contemporary fashion selections showcased in the ads. Sales from these items soared, exceeding five times the sales of JCPenney’s existing portfolio. This uptick, coupled with a 22% increase in Google searches for the JCPenney brand and a 200% rise in organic social media engagement, leads the company to confidently project a doubling of sales in the fashion sector this year.
Research from YouGov corroborates this renewed consumer engagement, revealing a 2.3% increase in ad awareness, a 6.5% rise in word-of-mouth discussions, and a significant 16.4% jump in purchase consideration from April to June.
Clifton Mark from YouGov commented, “The creative approach is far more modern and culturally in-tune than the brand’s former efforts. While it’s still early days, these metrics signify that JCPenney’s updated message is resonating.”
Substantial increases in foot traffic to stores reinforce these early successes. According to data reported by Placer.ai, while JCPenney store visits remained below the average for department stores from December 2024 to March 2025, there was a notable 3% rise in foot traffic for May post-campaign launch, while overall department store visits remained static.
Furthermore, JCPenney was honored as America’s top department store in a reader poll by USA Today, outshining competitors like Nordstrom, Macy’s, and Target.
Rebranding Efforts Inspired by Historical Campaigns
The essence of the “Yes, JCPenney” strategy draws inspiration from iconic marketing campaigns, such as Apple’s groundbreaking “Think Different” in 1997. JCPenney aims to redefine shopper perceptions after a painful decline, closing around 450 stores since 2010. Thalberg candidly admits that such ambition requires innovative thinking to shift consumer attitudes towards a brand that has been a retail fixture since 1902.
Compounding these challenges is the steep decline in the department store sector. Thalberg expressed, “I wish we could transcend being merely labeled a ‘department store.’ Our goal is to establish JCPenney as a premier destination for a diverse range of products, from home essentials to fashion for all ages.”
Embracing Subversive Marketing Techniques
The campaign launched with a cheeky, tongue-in-cheek apology to loyal shoppers for revealing JCPenney as a secret shopping haven. Spotlighting fashion deals that net savings without compromising style, the campaign conveyed a message: “Not enough people know what you already know. That’s why we can no longer keep it a secret.”
As part of its subversive marketing, JCPenney utilized a series of “anonymous ads” in Times Square and local malls to spotlight high-fashion items, supplemented by QR codes leading curious shoppers to online details.
The message extended to television, showcasing affordable yet stylish fashion items with spirited captions like “We’ve got the receipts,” emphasizing the quality and source of the fashion—“Yes, JCPenney.”
Innovative Wedding Giveaway as a Brand Statement
In an effort to capitalize on the buzz surrounding celebrity weddings, JCPenney hosted its own wedding event in Venice, California. At a remarkable cost of only $10,000, this affair stood in stark contrast to Jeff Bezos and Lauren Sánchez’s opulent wedding, which was speculated to cost between $20 million and $50 million.
Thalberg remarked, “We thought it was a brilliant way to poke fun at the lavishness associated with billionaires while celebrating love for couples who might not have the financial means for a wedding.” Estefany Gomez and Leonardo Rendon were wed in a celebration that utilized JCPenney’s offerings, including a beautiful $99 wedding gown and tuxedo, along with cosmetics and jewelry.
“This approach not only serves as a powerful proof point of our value but also highlights that memorable celebrations can happen without breaking the bank,” she elaborated. “Through this wedding event, we aim to demonstrate that both stylish fashion and romantic occasions can be accessible to everyone.”
Igniting Creativity and Revitalizing Culture
Marisa Thalberg’s appointment in October 2024 marked a pivotal moment for JCPenney, infusing a much-needed drive to re-engage a corporate culture beleaguered by years of financial struggle. With an impressive history of successful marketing campaigns, Thalberg is set on redefining the retail landscape for JCPenney.
In addition to her leadership at JCPenney, she is also serving as the chief customer and marketing officer for Catalyst Brands, formed earlier this year through the merger of JCPenney and the SPARC Group’s specialty retail brands, such as Aéropostale and Brooks Brothers.
To cultivate a creative environment, Thalberg immersed herself in the JCPenney experience, challenging her own preconceived notions about the brand. “I sought to identify any signs of revitalization within the brand that had potential but remained unrecognized,” she shared. The pivotal moment occurred when she discovered a variety of fashion options across all demographics, coupled with an impressive beauty department and lifestyle offerings.
“It became clear to me that many consumers simply didn’t know the full story. Identifying that opportunity led to the birth of ‘Yes, JCPenney,’ a phrase designed to invite consumers to rediscover JCPenney’s hidden gems.”
Recognizing Early Progress Amidst Ongoing Challenges
While Thalberg remains cautious about celebrating early successes, she acknowledges the palpable enthusiasm building among shoppers and within the JCPenney workforce. “It’s heartwarming to see frontline employees showcasing renewed confidence, which indicates we’re moving in the right direction,” she remarked.
However, tempered realism persists. Saunders from GlobalData acknowledges the commendable execution of the “Yes, JCPenney” campaign, yet emphasizes the necessity for improving the in-store experience. “To transform newfound visibility into sales, JCPenney must prioritize making its offerings relevant and ensure stores are inviting to shop,” he suggested.
Thalberg has a rebuttal for naysayers—revealing that JCPenney has invested over $1 billion since 2023 in brand updates, expanded offerings, and modernized stores. “At the heart of our goals is ensuring customers leave with purchases they love, all while spending less than they might have anticipated,” she concluded.
“Ultimately, our mission is resonating with consumers, and we’re thrilled to witness more shoppers gravitate toward JCPenney, which signifies progress.”