Overview JCPenney is an American retail store that was founded in 1902 by James Cash Penney. From 1913 to 1924, the company was called J.C.Penney and it was incorporated in 1913 and the company move its headquarter to New York in 1913. In 1927, JCPenney became a publicly traded company. There are more than 1,100 stores located both in United States and Puerto Rico and most of stores located inside the suburban shopping malls. Since 1998, it is one of the largest shopping retailer in the US which offered a wide range of products including family apparel, clothes, jewelry, shoes, accessories and home furnishing products. In the store, customers can find a well-brand such as Sephora, Mango, and also a variety famous labels like Arizona, Washington, and etc. Also, JCP invested a significant amount …show more content…
However, with the decision of closing the catalog business and the hiring of the new CEO Ron Johnson in 2011, the company has started experiencing multiples challenges in brand image and marketing strategy. Problems 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
JCPenney is a chain of American mid-range department stores that is based out of Texas that started over 100 years ago. JCPenny has been successful for most of its time up until the last three to four years. The company is trying relentlessly to overcome the lingering effects of the makeover that former CEO, Ron Johnson, had implemented in order for the company to take a new direction in hopes of increasing sales. The new CEO, Myron Ullman, has taken a close look into the markets demographic segmentation along with the income segmentation in order to attempt to return the retailer back to its old self, which is to appeal to middle-market customers. A couple issues of major concern for the company are the dissolving of Johnson’s Boutiques, the price of their products, and overall revenue.
According to Joe Skorupa, in his article JC Penney 's Turnaround Is Years Away, “Johnson’s time frame for the mini-mall concept to reach maturity in every JC Penney store was 2015. The mini-mall concept was to turn JC Penney into a small-scale mall. Ron Johnson wanted to separate each brand into small shops with in JC Penney. There was also a coffee shop with iPads and games for the family incorporated in areas of the store. Imagine a much smaller mall inside JC Penney stores. He was clear in his report to analysts that it will take the time to see results because the goal is not to improve JC Penney but to transform it. “Due to these changes JC Penney 's nearest debt maturity was on October 2015 when its $200 million 6.875% medium-term notes mature.” (Halkias, 2014). A great wat to explain will be with the product life cycle (PLC) “the course of a products sales and profits over its lifetime. The PLC has five distinct stages, number one is product development this is when the company finds and develops a new product idea.”(Armstrong & Kotler, 2013, p. 242). At this stage the product sales are zero and the company’s investment costs mount. Second is introduction, the period of slow sales growth as the product is introduced in the market. Profits are still nonexistent in this stage. Number three is the
In my review of the JC Penny case, I focus on understanding the main reasons for the decline of the JC Penny brand as well as ways to stabilize and revive it. First, I assert that the main causes for the brand decline were caused by the actions of then CEO Ron Johnson who misunderstood what the JC Penny brand was about, which caused the company to lose sight of its target market. From there, I suggest that the company bring back popular private label brands, begin listening to their customers, and embrace the growth of online retail. Finally, in order to ensure long-term success and stability, JC Penny must be repositioned as a modern brand that truly cares about meeting the needs of its customers by striving to inspire them in their everyday lives.
Across all channels, J Crew works to target those that are college-educated men and women who are fashion conscious and enjoy high-end fabrics. Their customer base is parallel to that of a Ralph Lauren or Ann Taylor shopper. J. Crew’s target market also varies across different channels. While they like to target a middle age, professional working class of both men and women, they have now also extended their pool of target customers to young adults through their affiliate store, Madewell. The e commerce segments of J Crew plays a big role as customers who engage with their social media outlets are likely to spend 2 times more according the 2014 Annual Report. This motivates J Crew to stay very active on all social media accounts including Facebook, Twitter, Instagram, and Pinterest. With store openings expanding throughout the country, J Crew targets those who shop in store with the eye-catching merchandising and the mixing of prints and
DuPont has been known for its low reliance on borrowings. In the 1970’s, the company had to assume a substantial portion of debt of Conoco, a newly acquired company. In 1983, the managers have to decide about the future optimal target debt ratio. Should the company continue to keep about 40% of its assets financed via debt or should it strive to lower its borrowings to 25%?
Kmart filed for reorganization under the U.S Bankruptcy code and announced they are going to develop a intend to manage the financial needs of their stakeholders. There plans were to cut back in size and restructure the organization. However, even with annuall...
J. C. Penney Company, Inc. Is one of America’s largest department store, drugstore, catalog and e-commerce retailers. Providing merchandise and services through department stores, catalogs, and the Internet.
currently found new ways to better the company such as “Walmart to go” online shopping.
Arrow Electronics is a distributor of electronic parts, including semiconductors and passive components. It was founded in 1935 and has reached number one position among electronics distributors by 1992. Arrow’s North American operations were headquartered in Melville, N.Y. Sales and marketing functions were divided among five operating groups. This case study focuses on the largest of Arrow’s groups, Arrow/Schweber (A/S).
...ized store, and has been consistently committed to bring quality, value, and convenience to their customers. Kohl’s has remained successful due to their competitive strategy and catering to their core target market. As long as they continue to follow their competitive strategy and revise operations and processes as the world and shopping trends and patterns continue to evolve, they will continue to strive in the retail market. Redesign and creativity are an important aspect in a retail environment, and Kohl’s has a big opportunity to appeal to their shoppers senses to lead them to the areas and products they are featuring. Their overall processes, goals, and operations have made them who they are today. Kohl’s has and will continue to be a popular retail establishment in many neighborhoods, and will continue to grow by leaps and bounds in the coming years.
Macy’s won the case. JcPenneys disagreed and appealed the case. The case went to the New York appeals court. The New York Supreme Court Appellate Division, First Judicial Department, restored claims alleging that JcPenneys persuaded Stewart to reveal confidential information about its contract with Macy’s and engaged in unfair competition. The appeals court said that JcPenney’s desire to have Martha Stewart’s company breach its contract with Macy’s was intentional, but declined to award punitive damages. The appeal decision was made by Judge Jeffrey K Oing, who after a six-week bench trial in 2013, rule that J.C. Penney had interfered with the contract between Stewart and Macy’s, paying the way for Macy’s to claim lost profit-related damages in the high-profile case. Macys was represented by Theodore Grossman of Jones Day, and he said that J.C. Penney is now in a worse position for having appealed. During the course of the trial, the top executive from all three companies took a stands including Macy’s CEO Terry Lundgren, and former J.C. Penney CEO Ron Johnson. J.C. Pennney argued on appeal that the contract between Stewart’s company and Macy’s was vague and did not prevent a side deal allowing J.C. Penney to set up mini Martha Stewart stores within J.C.
In 2011, MSLO expected to raise extra capital. It swung to investment financier Blackstone to locate a strategic accomplice. Blackstone, through its connections with members of the governing body of JCP, organized Ms. Stewart and JCP executives to meet. In spite of the fact that JCP executives truly knew about Macy's concurrence with MSLO and that MSLO was searching for a strategic (money related) accomplice, they continued to initiate negotiations for a retail partnership instead of the strategic partnership at first sought by MSLO. The confirmation in the record plainly shows that JCP executives realized that, keeping in mind the end goal to acquire this retail partnership, they would need to "break" the exclusivity provisions in the Macy's
Overhauling all the stores posed a huge cost and consumers missed the deep discounts that J. C. Penney’s was famous for also Penney had been hurt by their competitors like Macy’s Inc. and Kohl’s Corp. The former chief executive Myron Ullman phased out the catalog business and partnered up with the MANGO fashion line and Sephora cosmetics but this did not do too much for sales and lead to heavy discounts to clear out merchandise. According to our reading Mr. Johnson decided to lower initial prices on items by about 40% from where they started so consumers would be more comfortable and sales would improve. The next thing Mr. Johnson decided to do was reduce the number of promotions, pick a few in-season items and have them on sale for an entire month, have only two clearance sales a month and round off pricing to only dollars no cents. This is hopefully going to improve sales and Penney plans to spend eighty million dollars a month on this program because consumers will bargain hunt for the best
Amazon.com, as an e-commerce website has emerged as a leader in the e-business world. Originally, the company began as a website that sold books at discount prices, now Amazon.com has evolved into a marketplace for the world. Jeff Bezos, the founder and CEO, has changed the business model of the company many times. He is focused on expanding the selection of goods and services offered on the website, in an attempt to please customers. However, he is having trouble managing the priorities of his gigantic company, he should give the existing categories priority and worry about expansion at a later time.
In 2000, Coach Inc. became the first recognizable retailer in providing an accessible luxury good, namely in the women’s handbag market. Coach’s mission was to do something competitors had not yet realized was feasible: they offered a product of comparable or matched quality at a significantly lower price. Coach’s sales increased at an annual rate of 20% until the onset of a slowing economy in 2007 known as “The Great Recession” (Gamble, 2015, Page 73). Slowing sales began to take their toll; however, it was the introduction of primary competitors following a similar business strategy (Ex. Michael Kors, Versace, etc.) to the market that directly threatened Coach’s standing. In an attempt to revive business, Reed Krakoff was hired as the new