TheStreet.com  Jul 23  Comment 
NEW YORK (TheStreet) -- How did J.C. Penney fall from riches to rags? It failed to adapt. But there are ways for the company to turn itself around and become fashionable for investors again. Penney shares, at around $9, are down nearly 6% for...
Market Intelligence Center  Jul 23  Comment 
After closing Tuesday at $8.65, J. C. Penney Company Inc. (JCP) presents an attractive opportunity to get a 12.36% return in just 212 days, which is an annualized return of 21.28% (for comparison purposes only). To enter this trade, sell one Feb....
SeekingAlpha  Jul 23  Comment 
By Larry Meyers: I have no idea whether or not Herbalife (NYSE:HLF) is a legitimate multi-level marketer or a pyramid scheme. I have not analyzed the facts, and cannot speak to their merit or lack thereof. This is merely a commentary on...
SeekingAlpha  Jul 22  Comment 
By Dante's Investing Ideas: This article will serve as a quick update on J.C. Penney (NYSE:JCP). When I first started writing about it after the massive offering, the Company's securities were in absolute free fall. The stock traded down to the...
Motley Fool  Jul 21  Comment 
J.C. Penney makes a much better relative value proposition than Macy's and Kohl's.
StreetInsider.com  Jul 16  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/J.C.+Penney+%28JCP%29+Launches+New+Back-to-School+Marketing+Campaign/9666323.html for the full story.
Motley Fool  Jul 14  Comment 
J.C. Penney is trying to mount a turnaround -- and Macy's couldn't care less.
TheStreet.com  Jul 14  Comment 
NEW YORK (TheStreet) -- Despite having a pulse this year after a disastrous 2013, J.C. Penney  can't secure a permanent CEO to take the reins from current leader Mike Ullman.  According to a Wall Street Journal report, Mindy Grossman, the CEO...
SeekingAlpha  Jul 14  Comment 
By Corey Sommers: There aren't a lot of levers left for J.C. Penney (NYSE:JCP) to pull in the short term that might meaningfully move the company's stock price higher. SG&A has been cut about as much as it can and is holding steady at around $1B...
TheStreet.com  Jul 14  Comment 
NEW YORK (TheStreet) -- J.C. Penney shares are down -0.9% to $8.66 after reports that Mindy Grossman, CEO of HSN Inc. , turned down an offer to become J.C. Penney's new CEO.The company's board of directors is still searching for a successor to...


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.


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]


  • 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]


  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