Company Snapshot: JCPenney
6501 Legacy Dr.
Plano, TX 75024
Total Current Stores:
All 50 states and Puerto Rico
CEO, Ron Johnson
President, Michael Francis
COO, Michael Kramer
JCPenney was the number one department store ranked by total units, operating over 1,100 stores in the U.S. in 2010. In 2011 Kohls, for the first time, surpassed JCPenney ending the fiscal year with 1,127 stores to JCPenney’s 1,102. Kohl’s store count continues to increase, as JCPenneys continues to decrease. According to Chain Store Guide’s database of Department Stores, JCPenney is number four when ranked by total sales. 2010 was the first year Kohls beat JCPenney in total sales, and 2011 followed suit.
From 2010 to 2011 the company saw a 2.8% decrease in total sales going from $17.8 billion to $17.3 billion. Since the radical change in pricing and promotions announcement, however, numbers are looking much worse. Analysts are wondering if it was too much too soon, and if the pricing strategy is translating to customers. Comparable store sales for the first quarter declined 18.9%, traffic slowed 10% and average customer spending fell 5%.Total sales decreased 20% and Internet sales decreased 27.9% from last year. After these numbers were announced, JCPenney’s shares dropped more than 20 percent on May 16, the single biggest decline since the company was first listed on the New York Stock Exchange in 1929.
Company executives do not appear worried, and announced a whole set of new brands and expanded partnerships. Launching this fall, in time for the key back-to-school sales, and this holiday season are some big names and brands. The JCP label is slated for an August debut, while assortments from Puma and Nike will be expanded beginning this fall. Designer Cynthia Rowley’s Dream Pop collection for girls will also launch this fall, as will a collection from DC Shoes that targets young men. Collections from Betsey Johnson, Vivienne Tam and Lulu Guinness are also planned.
Chain Store Guide has reported major personnel changes at JCPenney lately and we are going to continue to see the department store retailer in headlines. Through the good, the bad and the ugly JCPenney continues to push its “fair and square” pricing policy with confidence, but will customers catch on? We will just have to wait and see.