Jc Penny Case Study

Decent Essays

JC Penny is an American departmental store chain; it has 1095 locations in the 49 states of U.S.
In the latter half of the 20th century, shopping malls became very popular and most of the company’s stores were situated in the downtown areas, they followed the trend by developing more stores in the shopping malls to attract customers and increase the financial profitability of the company.
In the 20th century, JC Penny chain has got the attention of customers, its freestanding stores have got the consumer traffic and this helps the company to earn profits and increase the market share.
From its inception in the year 1902 to the year 2009, the company was growing enormously, it added different businesses, made them successful and sold them out to focus more on retail business. One of the examples of this is its direct marketing insurance unit, it sold this unit to Dutch Insurance in 1.3 billion dollars in 2001 to focus more on retail business.
In the year 2011, company closed its catalog business and also it closed its outlet store in the Franklin Mills Mall.
In the June 2011, JC Penny announced that Ron Johnson is going to be the new CEO of the company and he made JC penny even worse. In his 17 months of leadership at the JC Penny, the company performed very poorly, its market share witnessed a declining trend, profits were decreased, the company laid off many employees and closed many stores in the United States.
He changed the whole corporate culture of the company and

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