At a J. C. Penney Store in Times Square, a three level showroom is part of the retailer's effort to create a newly hip image for the retailer where shoppers can also use any of 22 Internet kiosks to order items. Half of American households have not shopped at Penney over the application service provider (ASP) three years, so executives perceive considerable new opportunity. John Irvin, head of J.C. Penney Direct, says the company is excited about the turnaround, but knows it is not reaching all of its customers. J.C. Penney regards its online site, which in 2005 generated sales of $18.8 billion, as the hub of its total business. Online sales also went past the billion dollar mark in its recent fiscal year, which was better than performance of e-commerce sites from such discounters and department stores as Wal-Mart. The online J.C. Penney site offers higher-end items that are not available in the store, and the company is also being positioned as a more upscale store with store-label brands from such names as Nicole Miller and Chris Madden. Those labels and others make up 40% of sales, and more changes are on the way. Analyst Richard Hastings of Bernard Sands says Penney's is quickly moving into the new territory of multichannel consumer retail experience with such functionality as touch screens on cash registers through which sales staff can order online for customers who could not find what they wanted at the store. Kiosks and monitors are being tested in several stores that offer style looks only found on the Internet, and the online site has 250,000 items constituting a richer selection of such products as maternity wear, children's furniture, and big/tall clothing.