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

Global economic upswing became broader & stronger: IMF

Textiles | On 19th Apr 2018

Global economic upswing became broader & stronger: IMF

The global economic upswing that began around mid-2016 has become...

Courtesy: ITMA

Textiles | On 19th Apr 2018

ITMA 2019 expanding space due to overwhelming response

Due to overwhelming response, the exhibition space has been increased ...

BIDA’s Europe trip to showcase a different Bangladesh

Apparel/Garments | On 19th Apr 2018

BIDA’s Europe trip to showcase a different Bangladesh

The Bangladesh Investment Development Authority (BIDA) is taking a...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Mohammad Hassan
Biax Fiberfilm

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

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...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

Leave your Comments


April 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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

Yes No

Active Poll

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

Yes
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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

Yes No

Active Poll

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

Yes
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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

Active Poll

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

Yes
82.5%
No
7.8%
Skip
9.7%

Total Votes: 103


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