It took J. C. Penney Co. Inc. almost 12 years of selling online to achieve a significant milestone, but the multi-channel retailer says that annual e-commerce sales topped $1 billion in 2005.
“We recognized early on that e-commerce would be an important part of our business and focused on creating an exceptional shopping venue while capitalizing on our comprehensive fulfillment capabilities, says J.C. Penney chairman and CEO Myron E. Ullman III. We believe the Internet continues to provide a significant growth opportunity and look forward to maximizing JCPenney.com`s full potential as an integral part of our long-range plan.”
The launch of JCPenney.com in 1994 marked the introduction of a major department store chain selling merchandise over the Internet, Ullman says. Since its online debut, JCPenney.com has experienced rapid growth, realizing sales gains of between 30% and 50% each year, he says.
J.C. Penney was also a pioneer in integrating its web site with its department store and catalog channels. “The multi-channel approach is a powerful model that has driven strong growth for the online business and opened the door to many new ways of reaching and serving our customers,” says John Irvin, president of J.C. Penney Direct.
J.C. Penney, No. 11 in the Internet Retailer Top 400 Guide to Retail Web Sites, carries more than 300,000 SKUs in its online product inventory. With about $1 billion in e-commerce sales in 2005, J.C. Penney grew its online business 23.1% from web sales of $812 million in 2004.