Should I Invest in Jc Penney

In 2011, Ron Johnson was named the successor to the current CEO at that time, Myron “Mike” Ullman. He was selected as the new CEO because of the success he had at Apple and Target. Ron Johnson decided to focus on a marketing strategy to regain customer attention and increase their market share. Johnson decided to restore the brand by developing on the 6 P’s, which are product, place, presentation, price, promotion, and personality. The core customer base of JCPenney was used to using coupons in addition to hunting down sales for clothes and merchandise. Johnson introduced a “fair and

HISTORY : In 1902, James Cash Penney, in partnership with two other associates, opened the Golden Rule Store in Kemmerer, Wyoming. At the time it was uncommon to charge the same price to each and every customer; however, Penney preached the slogan "one price charged to all," regardless of customers' social status. After buying out his partners (in 1907), Mr. Penney opened two more stores. At present, J.C. Penney has more then 1400 department stores in the United States, Puerto Rico and Mexico, making it one of the largest retailers in the world.

In 1858, R.H. Macy founded R.H. Macy and Co. in New York City. From a dry goods store, he expanded his store occupy a total of 11 buildings which all offered different categories of merchandise. Here, R.H. Macy created what we now know as the department store (The History). Macy’s Inc. has grown and currently operates over 700 department stores under its various names (About Us). JC Penny Co. Inc. was founded in 1902 by James Cash Penny. JC Penny Co. Inc. was alike Macy’s Inc., however, they offered a catalog to better compete against department store like Montgomery Ward and Co. They currently operate around 1,100 stores worldwide (The Editors). The traditional department store format that Macy’s Inc. and JC Penny Co Inc. utilize has become

The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic

James Cash Penney founder of the J.C. Penny was founded in 1902, under the name “The Golden Rule Store” in Kemmerer, Wyoming. The store attracted farming and mining families. The company is known for assortment of merchandise and exceptional customer services. Penney expanded his store chain through a belief in the golden rule, treating his employees fairly and keeping them happy, and practicing prudent financial management. He believed in offering good value at a fair price to his customers and ensuring that they received the best service possible. Penney once said, “Courteous treatment will make the customer a walking advertisement,” maintaining the philosophy that price alone cannot foster customer loyalty; he believed that customer interaction was required for continued success (Bhasin, 2013 and Lutz, 2013). In 1914, the company was incorporated under new name, J. C. Penney Company, Inc. The headquarter was moved to New York City. By 1951, annual sales exceeded $1

The purpose of this paper is to advise analyze the financial statements of Dillard’s, Inc. in order to recommend whether or not my client should invest $1 million in the large retail company. I will compare the financial statements of Dillard’s, Inc. its competitor, Kohl’s Corporation. Investing in retail can be risky because a retail company’s performance is very heavily influenced by factors that have nothing to do with the actual company such as the overall performance of the economy or the weather during the holiday shopping season. There is, however, potential for profitability within the retail sector. Based on my analysis, I recommend that the client should not invest in Dillard’s, Inc. for the following reasons. First, Dillard’s has experience a decline in net income in the last three years. Second, liquidity ratios indicate that they could face possible liquidity constraints in the future. Third, long-term debt paying ability ratios indicate that the company could have trouble paying off the principal of its current debt obligations. Fourth, the profitability ratios are well below industry averages, suggesting that there are more profitable companies to invest in within the industry. And finally, Investor analysis ratios provide mixed opinion of the future performance of the company. I conclude that retail can be a profitable industry to invest in if an investor has the risk tolerance and risk capacity to withstand the uncertainty, but neither Dillard’s

J.C. Penney is an American retail company that engages in marketing apparel, home furnishings, jewelry, cosmetics, and cookware. James Cash Penney founded the famous business in 1920. On April 14, 1902, Penney and two partners the dry goods store in the small town of Kemmerer, Wyoming. Penney opened more stores, having 34 stores total in the American West. Originally, the company was called J.C. Penney Stores Company from 1913 to 1924. Later, it was reincorporated as J.C. Penney Co. In 1927, the company became a publicly traded corporation listed on the New York Stock Exchange. The company operated about 1,000 stores in 49 states in the United States and Puerto Rico in the beginning of the 21st century. The headquarters was located in New York

J.C. Penney’s started out with James Cash Penney operating a dry goods store called Golden Rule with two other partners in Kemmerer, Wyoming in 1902. Around 1907 the other two partners were bought out by Penney and he was now responsible for operating three stores. At

Chief Executive Ron Johnson strongly focused JC Penney around the differentiation strategy. He discontinued many different brands that have been carried for years in order to deliver more of the JCPenney brands. The new JCPenney brand prices were higher and there were little to no sales on these clothes. With coupons being distinct, customers wanted better prices on their clothing. The “usual” customers were used to markdowns and clearance sales which became few to none.The customers were also used to the catalog so they could do a lot of ordering from home.The catalog was seen as useless and a high dollar promotion so this promotion was also taken away.Mr. Johnson wanted to see the business build a better profit because they were beginning

JC Penney’s market share is currently at an all-time low. On December 8 of 2016, the company’s share’s market value was $10.56 and currently, the share’s market value is $2.66.

As one of the major retailers in the United States, JCPenney has 1,104 department stores in 49 states and Puerto Rico as of February 2, 2013. The key success of its business is tremendously depending on the sales performance. However, the retail business is highly competitive, with low barriers to entry and low profit margin. Due to large sales plunge in 2012, the company is in financial trouble. The thorough analysis of JCPenney’s financial statements is vital to judge the future performance of its business.

The first company I have selected for the Financial Analysis project is Southwest Airlines Co, which trades under the ticker symbol (LUV). Southwest Airlines operates passenger airlines that provide scheduled air transportation services in the US. The company operates around 694 aircrafts, and serves 97 destinations in 41 states, including 6 near- international companies. The second company I selected is Johnson & Johnson, which trades under (JNJ). Johnson & Johnson, along with its subsidiaries, is engaged in the research and development, manufacture, and sales of various products in the healthcare field worldwide.

I believe J.C. Penneys chief executive Ron Johnson was trying “ Differentiation strategy” ,he was trying to keep cost low and give the actual price to the customers without the coupons(Bethel,2016). He was trying to make the store more attractive by giving hot dog and popcorn. Personally, I think, he was taking a big risk. Differentiation strategy is good when the brand is doing good, and the brand wants to offer a little more to its existing customers. Ron Johnson's plan will made JCpenney lose its existing coupon shoppers. His idea of having seasonal sale was a disaster, as other store will have them too. Unknowingly, he is giving J.C. penny more competition. I am a grown woman, when I go shopping, I want clothes that fit good, have good

Johnson’s everyday and monthly pricing robbed the customers the thrill of urgency. Failure to understand JCPenny JC Penny like Walmart and Macy’s follow at market pricing strategy. While Apple on the other hand has successfully followed skimming strategy.

JC Penney is one of only a handful of one hundred year old plus companies in the United States. Founded in 1902 by James Cash Penney, the company has grown into a major retailer, with 1,104 stores and approximately 116,000 employees as of February 2013. The company sells merchandise and services through its department stores and website, jcp.com. Their product mix includes clothing and shoes, accessories, jewelry, home furnishings and beauty products. In addition, they provide services such as styling salons and portrait studios.