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Sozzi: 3 Shifts to Look Out For at Still Struggling J.C. Penney

Stocks in this article: JCP M DKS NKE

NEW YORK (TheStreet) -- Caution: this fun video is not a call to buy or sell J.C. Penney's (JCP) uber-volatile stock. Okay, with that out of the way, let me share a couple things happening at J.C. Penney this spring that might not be so apparent. There is more to know than the new lingerie deal with supermodel Elle Macpherson.

Home department: I still sense that traffic to J.C. Penney's home department has been soft in the first quarter. The reality is that J.C. Penney must continue to beat its customers over the head via marketing that affordable home goods could once again be snagged. That said, should someone venture to the home department, they would now find merchandise grouped by product category instead of in lifestyle setting. Totally easier to think through a purchase.

Online: Former J.C. Penney CEO Ron Johnson destroyed the online business, separating the digital team from the store team. The impact of that decision: a store employee was unable to satisfy on the spot consumer demands by picking a good from the online store. Now, J.C. Penney has the capabilities back in place to satisfy a customer demand in the store via its Web site. But, unlike Macy's (M) and even a Dick's Sporting Goods (DKS), it still lacks the ability to service online orders from its stores.

Kids: Something feel a little off in the J.C. Penney kids department? It should, gone is the giant orange Joe Fresh section, and in its place going branded merchandise from the likes of Nike (NKE) and Adidas.

BTW, expect more store and facility closure announcements from J.C. Penney in 2015.

By Brian Sozzi CEO of Belus Capital Advisors, analyst to TheStreet.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

WATCH: More videos from Brian Sozzi on TheStreet TV

At the time of publication, Sozzi held no position in the stocks mentioned.

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