If you were alive in the ‘70s, ‘80s, or ‘90s, you likely remember receiving JCPenney’s annual holiday catalog.
Back then, the department store was one of the nation’s largest non-food retailers, and its annual “wish book” was one of its cherished traditions.
But oh, how times have changed.
Today, JCPenney is struggling to remain relevant with consumers and is fighting for its future in an increasingly competitive retail environment.
In 2026, the department store chain closed six stores and saw net sales drop by more than 8% year over year, according to reporting from TheStreet and Retail Dive.
But the mall classic isn’t throwing in the towel just yet. It recently announced its holiday deals, betting that major savings will be enough to bring shoppers back through its doors.
JCPenney promises major savings for holiday shoppers
This holiday season, JCPenney says it’s helping shoppers save by putting 97% of its assortment on sale.
“As America’s Favorite Department Store, JCPenney has always been the place families trust for quality and value,” the retailer said in a statement. “In fact, 92% of budget-conscious shoppers say they are confident, ‘I got a good deal’ at JCPenney.”
These deep seasonal discounts, then, are intended to help strengthen perceptions of the chain as being a budget-friendly destination.
In addition to the sale, the department store also pledged to clarify discounts and deals, letting shoppers know exactly when to buy specific items to get the best savings.
To that end, “JCPenney is doing something most retailers won’t do: revealing its holiday playbook and guiding consumers through the season with exactly what to buy and when to buy it so they can feel more confident saying, ‘yes,’” the statement shared.
JCPenney needs more than holiday sales to turn things around
This new approach to holiday savings comes at a particularly crucial time for the department store.
After filing for bankruptcy in 2020, the chain was eventually purchased and underwent a major restructuring. As part of that, TheStreet’s Fernanda Tronco reported that it has closed more than 200 stores over the last six years.
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Now owned by Catalyst Brands, the chain has a chance at a second life, but is still struggling financially and reputationally.
“JCP remains financially stable and with the backing of Catalyst and investors it’s really not going anywhere,” Saunders told Retail Dive recently. “And, to be fair to the company, it’s not being run into the ground in the way Sears was — on the contrary, there is investment and effort to rebuild things.”
That being said, financial stability doesn’t necessarily translate to a successful retail and reputational comeback.
JCPenney is now in the tough position of having to convince consumers that it still has something to offer in an increasingly crowded retail market, particularly as shoppers have more options than ever for finding affordable clothing, home goods, and other everyday essentials.
That’s where the holiday deals come in.
If JCPenney can earn the trust of the value-seeking shopper during this high-stress, high-spend season, it has the opportunity to turn them into consistent visitors and regain some of its foothold in the sector.
But the challenge extends beyond simply getting shoppers through the doors over the next few weeks. The department store also needs to turn that renewed interest into sustainable sales growth.
“Penney’s holiday performance will test whether its combination of affordability, apparel, home and beauty can drive traffic and spending without excessive discounting,” Glenn McMahon, partner at MAC Advisory and Consulting, told Retail Dive.
“The issue is not simply whether consumers will spend; it is whether [JCPenney] can convert holiday demand into enough profitable sales and cash flow to address deeper business challenges,” he added.