Dive Brief:
- J.C. Penney is partnering with DoorDash to offer same-day delivery on home products in more than 600 stores and beauty and salon products in select markets, according to a company post.
- The department store retailer’s products are also now available on DoorDash’s membership program, DashPass. Penney said it planned to expand its offerings on DoorDash’s marketplace and add categories.
- The retailer is promoting the partnership and same-day offering with a 30%-off discount on orders through Dec. 31.
Dive Insight:
A year after its sale in bankruptcy, Penney continues to evolve and try to modernize in a fast-changing retail world.
The company couched its partnership with DoorDash in its broader efforts to become a fully multi-channel retailer.
“Throughout the years, JCPenney has evolved the shopping experience to bring inspiration to our customers and deliver on their wants and needs in a faster, more efficient way,” the company said in announcing its partnership with DoorDash. “From Buy Online Pickup In Store (BOPIS) to Curbside pickup and now with the introduction of DoorDash same-day delivery, we’re meeting our customers however they prefer to shop.” Richard Adams, Penney’s vice president of digital experience, said that the retailer was “continuing to make accelerated changes to deliver a competitive and accessible omni-always shopping experience.”
The pandemic sped up changes and investments that have been happening for years in the industry. Many are following the lead of giants like Target, which has had one of the best performances in the industry over the past two years. Target beefed up its same-day delivery capabilities through its Shipt acquisition from 2017. Shipt, along with Target’s other same-day offerings, including curbside, have driven explosive digital growth at the retailer. During the pandemic, that growth has reached triple digits some periods.
Walmart in August launched its own business-to-business delivery service, called Walmart GoLocal. The Home Depot became its first client in October followed by Chico’s two months later.
Shipt still provides same-day services to other retailers that don’t have the resources or imperative to buy their shipping service. In recent months that includes Rite Aid and Party City, which is offering free same-day delivery for New Year’s Eve party goods orders through Shipt. DoorDash, meanwhile, has recently added Dollar General to its roster of retail partners that have included PetSmart, Walgreens and others.
As for Penney, the DoorDash partnership adds one more tool in its omnichannel toolbox, which it will likely need as it tries to build a lasting turnaround following its bankruptcy last year.
In other areas of the business, the retailer recently announced that it was bringing Forever 21 products to its stores. That should come as no surprise after the CEO of Simon Property Group, one of Penney’s owners, said earlier this year that the department store chain could be a venue for the brands of Authentic Brands Group, which Simon teamed up with to buy Forever 21 along with several other struggling but well-known retail brands. Penney also recently partnered with another Authentic Brands property, Sports Illustrated, which is launching an apparel line at the retailer.
