Helming a storied brand
CEO draws on her retail experiences to steer JCPenney
Children's apparel is on display July 25 at the JCPenney at Stonebriar Centre mall in Frisco, Texas.
Worthington brand clothing is on display Dec. 16 in the women's apparel section of a JCPenney store in Frisco, Texas.
JCPenney Brand CEO Michelle Wlazlo is reflected in a mirror Dec. 16 at JCPenney's beauty shop in Frisco, Texas.
More than five years ago, Michelle Wlazlo enjoyed an enviable role at Target as senior vice president of merchandising, overseeing apparel and accessories, baby gear and essentials.
Then she got a call about an opportunity at JCPenney from former CEO Jill Soltau.
"I was like, 'No way,'" said Wlazlo.
Eventually, she relented, her curiosity stirred as she visited JCPenney stores. She was struck by the loyalty and long tenures, and also engaged with customers. She warmed to the idea of joining a company with a history that goes back more than a century. She said there was something that was "emotional" for her to have an effect on the storied company.
"This is where I want to be," she said. "This is so important to retail and to America."
She started in March 2019 with the role of executive vice president and chief merchandising off cer, evolving to bring on key supply chain leadership in 2024. Last year, she took on the position of brand CEO when the company made one of its biggest moves ever by combining with a retailing group to form Catalyst Brands.
Wlazlo, who shows passion and energy for the job when she discusses the company, aims to push JCPenney ahead by driving more customers and expanding the lineup, including with the newly merged brands.
The company saw results, including recently reaching 18 consecutive months of increased customer trip frequency. While there are clear challenges with the retail industry and finicky consumers, she sees growing opportunities for JCPenney.
"We have work ahead," she said at the Frisco, Texas store at Stonebriar Centre in the cosmetics section at the end of last year. "It's really educating again … our existing customers to get them to come in more," and to attract new shoppers.
Wlazlo, 58, is tackling her role under the leadership of Marc Rosen, who is CEO of Catalyst Brands and held the top post at JCPenney prior to the merger. The other companies under the new structure include Aéropostale, Brooks Brothers, Lucky Brand and Nautica. Eddie Bauer also is part of that lineup, though it recently fell into bankruptcy.
"Retail is all about the balance between art and science, coupled with strong people leadership," Rosen said. Wlazlo's "deep experience in merchandising, product design a n d sourcing enables her to provide in credible vision for our brands, and her understanding of the economics of the industry ensures that she delivers strong financial results."
JCPenney saw some metrics improve year-over-year in the period ending Nov. 1, according to a Copper Property CTL Pass Through Trust document. While net sales dropped about 4%, the decline was about 8% for the quarter a year earlier.
Though it saw net losses, consolidated adjusted earnings before interest, taxes, depreciation and amortization expanded through the first nine months of the fiscal year.
"We are confident we are on the right track to building a stronger JCPenney and are committed to serving as a key shopping destination for America's diverse, working families," the company said.
Getting here
For Wlazlo, the journey to JCPenney within the retail world began early in life as she grew up in Colorado. In her teen years, she would work nights and weekends at her stepmom's store — and was "hooked."
That turned her attention to how she could be part of the industry long-term.
"There's nothing better than retail," Wlazlo said. "Every day, it's a new customer. Every day it's something new."
She went to college in Minneapolis to get a degree in fashion merchandising and got a job at a downtown retailer called Harold, which catered to wealthier clientele.
The company empowered employees to take on more than mundane tasks. Wlazlo's efforts in the fashion jewelry section meant she flew to New York to buy products to sell in Minneapolis, giving her a closer view of the retail process.
After Harold, she managed the fine jewelry, fashion jewelry and accessory department at Saks Fifth Avenue.
"This was retail in the late '80s, where I was buying and working the shop floor, as they say, and talking to the customers every day," she said.
Later, she made her way to the San Francisco area working for BeBe. Known for tech startups, the city also houses the headquarters for retail icon Gap, which recruited Wlazlo.
Wlazlo worked there for nearly two decades, rising through the ranks, according to her LinkedIn profile. Her efforts included Gap, Gap Outlet and Old Navy, giving her key experience with working-class shoppers. It was from Gap that she made the move to Target.
Leading the pack
As brand CEO at JCPenney, she's leveraged her past experiences and leadership skills. She doesn't take a one-size-fits-all approach to management.
With the trust she's built on her leadership team, she can give clear thoughts, taking on problems or feedback, be it good or bad. It's better to direct early on so people have clarity, avoiding more conversations down the road, she said.
Lauren Tessaro, the senior vice president of merchandise strategy and operations at JCPenney, saw Wlazlo's leadership up close. She said the brand CEO gives her room to execute her job.
"She really empowers her team to lead in our areas of expertise," Tessaro said. "She sets kind of a vision, with the customer at the heart of it, but … allows us to do the job. And, you know, if she needs to lean in and get into the detail, she will. But mostly, kind of allows us to lead autonomously and be successful."
Wlazlo is extremely driven and results-oriented, Tessaro said. She also tries to make everyone feel good about "interactions with her," she said.
As brand CEO, Wlazlo's role includes interacting with the public, and that includes sporting ensembles that come straight from JCPenney stores. So when she heads to places like New York, she loves the compliments on her outfits.
"And (I) always say, 'It's JCPenney,'" she said. "And so many people will go, 'What?'"
That's the approach behind the new marketing push with "Yes, JCPenney" — an effort to explain to the masses the sometimes surprising options available at the retailer. Started last year, it's called its "boldest brand campaign yet."
The company bets on a varied lineup of its own brands, including names such as St. John's Bay and Worthington, off ered at its stores and online channels to make that marketing pitch work.
"You can control more of your own destiny," Wlazlo said.
Wlazlo also is guiding the integration of the SPARC Group and its brands. Last year, the company began to off er Aéropostale in some stores and aims to expand that to about 300 this spring.
In September, the company said it off ers RM Rebecca Minkoff and the brand's list includes more than 85 pieces. A month later, Ashley Graham debuted a namesake collection at JCPenney.
Rosen credits Wlazlo for helping with the efforts. She "clarified the positioning of our private label brands like Liz Claiborne, Stafford and Arizona," he said.
