Home / Knowledge / News / Apparel/Garments / What ails JC Penny..?
What ails JC Penny..?
07
Sep '13
Over the last five years, J C Penny has been continuously witnessing depressing sales performance. The total net sales of the company in 2008 was USD 18.48 billion, which fell to USD 12.98 billion in 2012. In comparison with year 2011, sales in 2012 have reduced by 25%.
 
The J C Penny Board recently brought back former CEO Mike Ullman, who has reintroduced some strategies and is bringing back key merchandise under store names like St. John's Bay. 
 
J C Penny tried to rebound its fortunes under a revolutionary plan implemented by former CEO Ron Johnson, which too failed. Johnson was ousted in April after 17 months on the job. 
 
J  C Penney Company, based in USA is one of the largest apparel and home furnishing retailers in the world. The company was established by James Cash Penny in 1902 and has grown to become a major retailer operating through 1,104 stores with a total 111.6 million square feet of space. 
 
J C Penny has registered a loss of USD 985 million in 2012. This is the second consecutive year of losses from continuing operations. For the second quarter of 2013, J C Penny reported net sales of $2.66 billion compared to $3.02 billion in the fiscal second quarter of 2012. 
 
Comparable store sales declined by 11.9% in the quarter, and were negatively impacted by the failure of prior merchandising and promotional strategies, which resulted in unusually high markdowns and clearance levels in the second quarter, a company release said. For the second quarter of FY 2013, the Company incurred a net loss of $586 million. 
 
In addition, the lengthy renovation and disappointing re-merchandising of its home department sections adversely impacted the Company's comparable store sales during the second quarter. 
 
The other indicators of performance are all showing consistent diminishing performance. Sales per gross square foot in 2011 were USD 154, which has come down to USD 116 in 2012. There has been lot of upheaval at the top & senior management at J.C. Penny over the last 30 months. 
 
J C Penny has a diversified supplier base of both domestic & foreign suppliers. There are over 2500 domestic & foreign suppliers who have been doing business with JCP since many years. Company, through its international purchasing subsidiary, maintains buying & quality assurance offices in 12 foreign countries outside USA. 
 
J C Penny with its consolidated subsidiaries employs approximately 116,000 people. It outsources various information technology functions to third party service providers.
 
 

Must ReadView All

Apparel/Garments | On 25th May 2017

AAFA reinforces opposition to Border Adjustment Tax

The American Apparel & Footwear Association (AAFA) has reinforced its ...

Textiles | On 25th May 2017

Schlafhorst launches 2.5 millionth Autoconer unit

Schlafhorst, Germany’s leading textile machinery firm, has announced...

Textiles | On 25th May 2017

Mexican textile firm installs Monforts Montex 6500 stenter

Tizayuca Textil Vuva SA de CV, a vertically integrated producer of...

Interviews View All

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search