QUOTE AND NEWS
Motley Fool  Oct 21  Comment 
J.C. Penney has set optimistic goals for the next few years, but even the best-case scenario isn't very attractive for investors.
SeekingAlpha  Oct 20  Comment 
By Elephant Analytics: Although I have been (mostly) a long time bear on J.C. Penney (NYSE:JCP), its stock has been badly pummelled over the last few weeks, and its valuation has fallen to the point where reasonable growth may be able to support...
SeekingAlpha  Oct 18  Comment 
By Theo Vallee: The recent sell-off in J.C. Penney (NYSE:JCP) provides an excellent entry point for a long-term investor. After trading up about two percent during the analyst day presentation (10/8), the stock sold off significantly as the...
Forbes  Oct 18  Comment 
Anyone following the leadership turmoil in American iconic firms like EK, HP and JC Penney in recent decades -- or having observed how different divisions, departments, and teams are managed within large organizations -- cannot help but reach a...
SeekingAlpha  Oct 17  Comment 
By Dave Dierking, CFA: Most people are already familiar with the story. J.C. Penney (NYSE:JCP) has been a struggling retailer for some time now. Ex-Apple guy Ron Johnson came in with much fanfare only to exit shortly thereafter amid a number of...
SeekingAlpha  Oct 16  Comment 
By George Hanley: Shareholders in department store operator J.C. Penney (NYSE: JCP) have undoubtedly been unhappy with the company's stock price trajectory over the past five years, down roughly 80%. The company was hurt by a shift to an everyday...
Motley Fool  Oct 16  Comment 
J.C. Penney's revival is threatened by the long-term market share gains of off-price retailers.
Motley Fool  Oct 15  Comment 
Episode of 'Where the Money Is' where recent news on AMZN, JCP, and MCD is analyzed and discussed.
Motley Fool  Oct 15  Comment 
Huge demand for merchandise from the hit movie has brought shoppers to any store which might have it.
Motley Fool  Oct 15  Comment 
Department store chain is going outside the industry for leadership once again. Did the company get it right this time?




 

J.C. Penney (NYSE: JCP) is a leading department store retailer of apparel, accessories and home furnishings. They produce their own private brands in addition to selling products from other companies.

The company has faced changing consumer tastes in the past years--consumer traffic is being drawn to Wal-Mart (WMT) and Target (TGT) at the expense of department stores such as J.C. Penney and Macy's Inc. (M). In addition, J.C. Penney relies heavily on private labels[1] Although private label products--in order to appeal to as many customers as possible--are not unique enough to compel fashion-conscious consumers to purchase them, they are still a viable option for customers who do not follow trends. JCP also faces lower profit margins in the due to rising commodity costs which will increase its clothing costs.

Business Overview

The company divides its merchandise into several categories which include: men's, women's and children's apparel, accessories and cosmetics; home furnishings; leisure and recreational equipment; jewelry and watches.[2]


Business Growth

Trends and Forces

Private Brands Not Unique Enough to Differentiate from Cheaper Alternatives

Private label brands are produced exclusively for a particular store. For example, J.C. Penney has a number of private label brands including Arizona Jeans Co. and Stafford.[3] Retailers such as Macy's and J.C. Penney find private labels very attractive because the pieces often have higher margins than branded merchandise from other companies. However, the economic crisis of 2008-2009 has made people more reluctant to spend. When consumers have less money to spend, they will be more inclined to spend it on something that excites them. Private label brands, in an effort to appeal to as many consumers as possible, are less likely to spur a person to buy them when disposable income is already scarce.[4] Also, the proliferation of discount retailers such as Wal-Mart, Target and Kohl's (some with their own exclusive brands) means that consumers can trade down to another store if they can no longer afford prices at J.C. Penney. Private label merchandise, by its nature, is not differentiated enough to keep fashion-conscious consumers purchasing them in lieu of lower-priced alternatives.

Cheers pal. I do aprpceitae the writing.

Competition

J.C. Penney's main competition is mid-tier department stores such as Macy's Inc. (M) and Kohl's (KSS).

  • Macy's Inc. (M) has a higher price point than J.C. Penney and sells more exclusive brands. Although both companies produce private labels, they make less of a contribution to Macy's total sales than they do J.C. Penney. [5] [6]
  • Kohl's (KSS) is slightly smaller than J.C. Penney, both in terms of sales and locations Kohl's also operates at a slightly lower price point. Kohl's position as a discount retailer makes it more attractive for recession-stricken consumers who are looking to save money. Although it has fewer locations than J.C. Penney the fact the company sells its goods online means it is not at a large disadvantage to the larger retailer in terms of accessibility.[7]


News

  • On July 27, 2011 marketing chief Mike Boylson retired after 32 years working with JCP and 8 years serving in his former position. This will be first time Ron Johnson, who was appointed chief executive of JCP in November 2010, makes a senior-level appointment.[8]

References

  1. JC Penny 2009 10-k p.22
  2. JCP 2008 Annual Report pg. 2  
  3. JCP 2008 Annual Report pg. 2  
  4. Alexandria Sage. ANALYSIS - Private label eclipsed by brands in US retail slump.
  5. M 2009 Annual Report  
  6. JC Penny 2009 10-k p.22
  7. Discount Retailers Thriving in Recession.
  8. [1]
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki