J. C. Penney Company is a holding company for struggling department store operator
J. C. Penney Corp
. One of the largest department store and e-commerce retailers in the US, J. C. Penney Corp. operates more than 1,000 JCPenney department stores in 49 states and Puerto Rico. Its stores are mostly found in suburban shopping malls, and sell clothing for men, women, and children, as well as accessories, homeware, appliances, and curtains and drapes. They may contain shop-in-shops like
Seattle's Best Coffee
, among others. Founded in 1902, current CEO Marvin Ellison is tasked with steadying the ship after his two predecessors were unable to do so.
J. C. Penney Corp. is one of the nation's largest apparel and home furnishing retailers. It has about 1,020 stores selling mid-range clothing for women, men, and children, as well as cosmetics, furniture, kitchenware, home decoration, appliances, and luggage. It operates some 520 Sephora stores. As well as physical stores, J. C. Penney operates an e-commerce website and omnichannel offering.
The company's biggest earner is women's apparel, at 25% of total sales, followed by men's apparel and accessories (22%), home (12%), women's accessories including Sephora (12%), children's apparel (10%), footwear and handbags (8%), jewelry (6%), and services and other (5%).
J. C. Penney Company's operating business
J. C. Penney Corp.
has a presence throughout the continental US, Alaska, and Puerto Rico. Its supply chain network operates 13 facilities in the US.
Sales and Marketing
The operating company sells merchandise and services to consumers through its department stores and its website (jcpenney.com). The company fulfills online customer purchases by direct shipment to the customer from its distribution facilities and stores or from its suppliers' warehouses and by in-store customer pick up.
The company markets its products via newspaper, television, programmatic marketing, radio, and other media.
J. C. Penney looks to have turned around its alarming financial situation, posting revenue growth of 3% in fiscal 2015 to $12.6 billion. This follows on from 3.4% growth in 2014, and while revenue is still low by the company's standards, a return to growth is good news. Comparable store sales were up 4.5% for the year, and an enhanced e-commerce offering proved successful. The top line also benefited from the opening of 28 Sephora locations in the year.
The company has also returned to (marginal) profitability, posting net income of $4.6 million, representing growth of 3%. The company's cash position improved, with cash from operations coming in at $440 million, an increase of 84%.
J. C. Penney is working to clarify its brand identity, which it feels has become clouded in recent years. J. C. Penney has begun selling appliances again for the first time in several decades in order to tap into the demographic of millennials entering the housing market for the first time.
Omnichannel is a big focus, and the company has rolled out initiatives such as the ability to buy online and pick up in-store on the same day.
As part of an effort to increase transaction spend, the company added 28 Sephora locations and revamped their salons, and plans to redesign the center core area of their stores, which typically includes fine jewelry, handbags, footwear, sunglasses, and accessories.
In 2017 J. C. Penney announced it would close 130 to 140 stores, or about 13% of its stores, that it deemed unprofitable. The closures are a key part of the company's larger strategy to return to profitability.