Although J.C. Penney has shown impressive reduction in operating expenses, the company's efforts to cut costs are running out of room which should slow the expansion of the company's operating margins.
J.C.Penney's market share price shows that it has a way to go before hitting a solid bottom-the latest rally in the markets are temporary.the markets will head lower for another year or two bouncing up and down but trending lower-only way that will change more rapidly is if... the federal reserve drops interest rates lower and quicker. That will start the housing sector which will lead all sectors into next rally-historicaly housing leads economy. Retail will not rebound until people feel comfortably about spending money again. the federal reserve has not done enough yet to make that happen.
J.C. Penney's woes at the beginning of the decade caused the company to lose a significant portion of its customer base. The dynamic, ultra-competitive landscape of retailing may mean that many of these customers will not return.
Historically the last decline(Dot-Com) the market high was in (Jan. of 2000) the bottom was (Oct. 2002) it took over two years for the market to unwind! The total market decline was about 34% top to bottom! it was a sector (tech) bubble.The bubble we are moving out of now is two sectors deep, the two sectors are intertwined more deeply with each other.the financials bubble and a housing bubble secondly are linked more than tech and finacing were linked in 2000-the whole economy follows housing! and financials make or break the housing sector.those sectors have to heal,banks are balancing budgets, writing down losses and gathering cash from a large spread in the finacial market-when they are comfortable again they will start to lend again-AND... Retail(J.C.Penney's) follows what the finacial sector and housing sector creates(wealth)surplus income for people to spend buying excess goods from walmart jcpenny nordstroms gap etc. etc. we are a ways away from financials being generous with their monies-we will all suffer decline in comfort until the spiggots are turned on again-right now there is a slow drip!