Penney tackling Kohl's off-mall

JCPenney is reported to be going off-mall, pitting it head-to-head with Kohl's.

They're planning 200 new stores in the next few years -- this year they will be opening 29, of which 20 will be off-mall locations.

Building new stores beyond malls gives J.C. Penney more flexibility in location, allows the company to locate closer to its customers.

It's a strategy that's worked for fast-growing Kohl's the past 15 years and could cut into the Menomonee Falls company's market share throughout the United States.

Other indications that they may be targeting Kohl's are the store layouts and merchandise assortments, which are similar to Kohl's:

The off-mall stores are slightly smaller than traditional, mall-based Penney's and are built on one level, rather than two. The stores also are laid out differently, with a central checkout stations. They offer clothing and home items, but not furniture.

With that concept, J.C. Penney is chasing the same type of customers as Kohl's...

Kohl's, though, is planning even more growth, with 500 new stores projected in the next five years. If both chains meet their plans in new-store openings, they'll be roughly ties at about 1200 stores each.

I've got to wonder if there's enough business to support that many stores.