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

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


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



X