Over 80% of new stores to be opened between 2007 and 2009 will be at off-mall locations. J.C. Penney's new, off-mall strategy will allow the company to expand into new markets, attracted more consistent shoppers and expand more rapidly.
Hedge fund manager Ackman called JCP the most "economically sensitive stock that Pershing Square owns". He believes it's a cheap and high quality asset due to its real estate assets and how it has a strong balance sheet with a nearly debt neutral balance sheet. On October 8th, 2010, Pershing Square disclosed a 16.5% stake in JCP with 39,075,771 shares.
J.C. Penney has launched a cycle time reduction initiative that will allow it to bring new fashion and products lines to stores more quickly. This effort will allow J.C. Penney to keep up with trends and should attract more customers more frequently.
J.C. Penney's substantial portfolio of exclusive and private brands, as long as its recent tie-up with Sephora, will attract the higher income, higher margin consumers that the company covets.