The JCPenney company is into a perfect competition market. A perfect competition is defined as a high number of firms competing against each other selling identical products. It is also due of the fact that there is a free entry and exit to the market and the information about their products is well known. JCPenney is competing against every little retailer in America but have lately found itself competing against a more upscale competition against companies like Macy’s, Kohl’s, Target, Sears and Wal-Mart. In 2016 JCPenney has done very well against its competitors on a revenue basis. They have a revenue growth increase of 1.5% year on year, which is above their competitors averaging a revenue growth of 1.09%. They also have a small 7.8% market share competed to their primarily competitors, Macy’s with 17% market share and Kohl’s with a 14.1%. They also have a 1.7% higher that competitor like Target in their current ratio. A strong positive current ratio means that they are in a strong financial position. Taking a deeper look at the competition between two major retailor companies, JCPenney and Macy’s. We can see that JCPenney has a -31.8% of return on equity compared to a In comparison with their bigger competitors, only 13 percent of their costumers have an annually household income of more than $100,000. Kohl’s, Target and Macy’s have better results in this section. On the other side twenty-nine percent of JCPenny’s costumers makes less than $35,000 a year, capered to 19 percent at Khol’s and 20 percent at Macy’s. They are also aiming at putting the store in a region where the population is 100,000 person or more. They have noticed that their consumer’s purchase behavior is that they enjoy to shop seasonally and even during the off-season. Their costumer will usually buy in high volume, and that they see best values through deals and
The retail industry has always been a very competitive environment when dealing with sales and maintaining up to date with the current trends. Ross Stores has become one of the most successful companies in the apparel business since established in 1982 by Stuart Moldaw. (Ross Stores, Inc. History, n.d.). Although there is much competition out there, Ross is different from other retail stores. The reason for this is that Ross acquires most of their merchandise comes from their competitors, such as name brand department stores who ordered too much of an item and have decided not to sell it anymore. The overstock then results in in a loss of money for this company which in turn becomes a gain for Ross since the items are sold to Ross at a low price.
Does Macy’s have the right resources and capabilities for their current strategy? Why or why
J.C. Penney Corporation, Inc., is an American retail company, founded in April 14, 1902 by James Cash Penney. After graduating from high school, Penney worked for a local retailer. Later, using money from savings and a loan, Penney joined the partnership with Ron Johnson and Tom Callahan, and he moved with his wife and newborn son to Kemmerer, Wyoming, to start his own store. Subsequently, Callahan and Johnson dissolved their partnership in 1907 with Penney. James Cash Penney continued to benefit the growth and success of his business. J.C. Penney and this very day occupied in marketing apparel, jewelry, cosmetics, home furnishings, and cookware. Besides to selling prevailing merchandise, JCPenney stores many times house a number of leased
J.C. Penney is in only its second year of Internet sales, and its going strong and growing. Sales jumped from $15 million to $102 million since the beginning of jcpenney.com.
Return on sales is decreasing and is below the industry average, but the goods news is that sales and profits have been increasing each year. However, costs of goods are increasing and more inventory is left over each year causing the return on sales to decrease. For 1995, it was 1.7% which is less than the average of 2.44% but is a lot higher than the bottom 25% of companies as seen in exhibit 3, which actually have negative sales return of 0.7%. Return on equity is increasing each year and at a higher rate than industry average. In 1995, it was 20.7%, greater than the average of 18.25% and close to the highest companies in exhibit 3, of 22.1% showing that the return in investment in the company is increasing, which is good for the owner.
Kohl’s also boasts a loyal customer base and strong brand equity. These strengths are critical to offset their weaknesses. Flaws include an imbalance on sales for men’s products and a lacking online presence. (Kohl's Corporation, n.d.) Another way that Kohl’s is actively counterbalancing their negatives is by capitalizing on opportunities. Kohl’s has found that their beauty sections are an immense source of opportunity. As a result, the company is expanding those departments in an effort to capture those sales that would otherwise go elsewhere. (Wahba, 2014) Finally, Kohl’s keeps the knowledge of their threats at the forefront of their decision-making. They understand that their coupon system can be abused and cause profit losses. They also recognize that price wars in their industry can also be very damaging. As a result, they are working towards more secure methods of offering savings and strategically making efforts to remain the leader for price setting. (Wahba,
One of the first moves that the new CEO Ron Johnson did was to eliminate the use of promotions and coupon which created the biggest problems for the company. By looking at the chart in Appendix 1, we can see that JCpenney Operating Income Annual has started declining since the move was made in 2011 with the annual profit from $16 billion per year to the point where company start experienced loss in financial crisis. At the same time, JCPenny also laid off more than 1,600 workers during the 1 year span period. From 2009 to 2013, the company’s asset is also going down from $18 billion to $16.3 billion and it seemed that the company has lost its identity. JCP’s main customer was used to
Economics of sale is high (so, the retailer is able to sell out products with discounts)
The most significant percentage that stands out in the vertical analysis is the Merchandise Costs. The Merchandise Costs for Costco equals 89.3% of Net Sales. This number seemed high to me, so I searched through Costco competitors to check their merchandise costs percentage. Walmart is 75% and Target is 71%. From a consumer standpoint Costco is the place to shop since their markup is only 10.7%; less than half of their major competitors. This also shows Costco needs to sale over twice as much inventory as their competitors to earn the same amount of profit.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
This written assignment will be based on how various organisations engage in finding and developing talented individuals to the point at which fully capable employees are born. The two companies that are selected would be IKEA and Walmart. IKEA and Walmart were chosen as there are various unique ways in which talented individuals are developed in these organisations. Walmart was established in 1962 by Sam Walton and was first opened in Rogers, Ark. In the 1970’s, Walmart went international through the establishment of The Walmart Foundation. They had become America’s Top Retailer in a span of 20 years from 1971. As of today, over 2.2 million associates worldwide are employed in 11,000 stores around 27 countries. The idea of IKEA began in the 1920’s when 5 year old Ingvar Kamprad started selling matches to his neighbours. In 1940’s, Ingvar Kamprad started developing IKEA into a furniture retailer. 20 years later, the IKEA concept started to take shape wherein hero product developed such as
Demographic segmentation -Age: American Apparel mainly targets young adults of 20-35. They steer away from the under-18 age. They also choose not to go after the popular 35-45 age bracket and people over the age of 45. -Gender: female and male -Income: related to the age of the target, the company knows many of this target market have entry-level jobs which means they are not making six-digit figures, but they are making less than $100,000 a year.
My company of choice for this report is Macy 's. 'The Magic of Macy 's ', as the company advertises it, has inspired me to shop there, take advantage of their incomparable discounts and great online shopping experience. Macy 's, Inc. is one of the largest department store chains in the United States of America. Macy 's manages stores under the Macy 's and Bloomingdale 's brands. I enjoy shopping at both of the company 's store brands, Macy 's and Bloomingdales. Bloomingdales provides a more personalized experience
Marzilli, T. (2013, April 24). Long-Term Look At Brand Perception Shows J.C. Penney Losing Ground Vs. Kohl's. Retrieved April 07, 2014, from http://www.forbes.com/sites/brandindex/2013/04/24/long-term-look-at-brand-perception-shows-j-c-penney-losing-ground-vs-kohls/
H&M is the world’s second largest retailer, only behind its main rival Zara of Inditex (Petro, 2012). The company currently has 3006 stores in 53 countries. The company does not own any factories. H&M outsources production to network of 800 independent suppliers; 75% in Asia and 25% in Europe. In order to increase the efficiency and productivity of its supply chain, the company strategically locates its network of 20 to 30 production offices close to its suppliers. According to Stockholm Newsroom, the pretax profit of the company for the month of June to August of 2013 is $907 million, which indicates an 11 rise in turnover (Pollard, 2013). The company continuous development plan facilitates its goal for both brick and mortar, and online stores expansion worldwide. The target segments for H&M, a category specialist store, are trendsetters and fashion/money conscious males and females ranging from 16 to 40 years old with income ranging $15,000 to $60,000 annually.