The news: JCPenney is taking aim at off-price retailers in its latest ad campaign, using a parody wellness retreat featuring real shoppers to contrast the pitfalls of buying off-price with the ease of shopping at JCPenney.

In addition to the short film, the retailer is offering shoppers the opportunity to trade in their “retail regrets” for $15 off a $50 purchase from August 28 to 30. Those items will be donated to Good360.

Why it matters: The point of JCPenney’s cheeky “Retail Rejuvenation” campaign is to try to convince shoppers that the retailer can offer real value even if it doesn’t have the lowest prices.

• The company is “pushing up in a playful way” against retailers that promise the “thrill of great deals, but it’s not always as true as it seems,” Marisa Thalberg, chief customer and marketing officer for parent company Catalyst Brands, told Adweek.
• Unlike off-price shopping, which JCPenney paints as an unsatisfactory experience that requires consumers to compromise on brand, style, and product condition, it promises curation, consistency, and a better chance for shoppers to find exactly what they’re looking for.

However, strong creative execution is unlikely to be enough to restore JCPenney’s growth amid off-price’s upward trajectory.

• Traffic to JCPenney stores declined 3.6% YoY in Q1, while TJ Maxx, Burlington, and Ross saw visits grow by 2.5%, 7.7%, and 18%, respectively, according to Placer.ai.
• Off-price retailers recorded nearly twice as many visits as department stores in Q1, underscoring the latter’s declining relevance as more shoppers trade down.

Implications for marketers and retailers: Poking fun at off-price may earn JCPenney attention, but getting shoppers to consider the retailer for more of their needs will be a tougher sell. Mid-range department stores like JCPenney have lost ground as consumers choose between lower-cost retailers and more aspirational, fancier options. Just 14% of US adults rate department stores as their top choice for in-store apparel shopping, compared with 29% for mass retailers and 20% for discount stores, per KPMG.

Ultimately, JCPenney’s campaign shows the difficulties confronting retailers caught in the middle: Without a clear point of differentiation—whether it’s brand selection, convenience, curation, or in-store experience—companies will struggle to engage consumers.