J. Penney Corporation Inc.

970 Words Apr 26th, 2016 4 Pages
Company Overview:
J. C. Penney Corporation, Inc, also known as JCPenney, is a chain of American department stores specializing in selling affordable clothing, shoes, accessories, and home decor for the entire family. For more than a century, JCPenney has been a regular shopping destination and a dependable retailer for the American family. In 1902, the department store was founded by James Cash Penney and was established on the principle of the Golden Rule. Over the years, the company has developed a strong reputation for putting its customers first and servicing everyday needs. From its incorporation in 1924 until 2010, JCPenney experienced large levels of growth and success. JCPenney’s Corporate address is 6501 Legacy Dr, Plano, TX
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The demand in this industry is primarily driven by spending and interest rates. Due to this fact economic health affects consumer confidence and spending. But overall there has been a consistent trend of sales in the sector as a whole. Overall in the United States, the industry has a combined revenue of about five trillion dollars. Revenue (in current trading dollars) for retail trade in the US is to forecasted to grow an annual compounded rate of five percent between 2015 and 2019. In addition, total United States retail sales increased 2.1 percent in the first ten months of 2015 compared to the same period in 2014. While as a whole the industry seems profitable, there are many challenges that are prominent in this industry. Firstly, many store have uneven cash flows due to seasonality of their sales. Many companies have a heavy fourth quarter of their year due to increased sales for the holidays. Secondly, the protection of consumer information is a challenge that has been plaguing retailers recently. Due to new electronic payment systems, hackers can hack into industry software and steal consumer information. And thirdly, this industry has a high employee turnover rate. According to recent data, the average is about fifty percent annually. This is due to low pay and low growth potential. In addition, retailers are reluctant to hire new employees
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