In the article by Phil Wahba he talks about how
JC Penney wants to sell one of their headquarters that is located in Dallas,
Texas. Their reasons for wanting to sell one of their headquarters is because
JC Penney has been in debt for a few years now. This was due to a reinvention
they had planned about four years ago, which caused their sales to drop about
30%. They wanted to add new improvements to their stores which cost them about
$300 million in such projects. Another reason why they are in so much debt is
because their annual interest expense was $400 million.
Therefore they believe that if they remain headquartered in Texas and
they lease the space they can save more money. Also, since they will have less
stores that means they need to cut back on their employees. This year they have
cut about 300 jobs. However, recently they have seen some improvements since
they have a new CEO. Their sales saw an increase of 4% since the holidays. This
is looking good for them because they are also exploring other ways in which
they can begin increasing their sales.
In my belief, I think that JC Penney will be able to bring their sales
up again. It is just a matter of advertising and reaching out to the customers.
It seems that for the past few years many have forgotten about JC Penney since
they have not advertised as much, however, I did see a lot more advertising over
the holidays.
Website: http://fortune.com/2016/02/05/jcpenney-home-office/
Website: http://fortune.com/2016/02/05/jcpenney-home-office/
I agree with you. I think they can definitely increase their sales. The loss of a headquarters shouldn't be too bad because most of their services can be provided online.
ReplyDeletePeople also easily forget about it when there is so many other department stores that sell pretty much the same stuff they do. Hopefully JC Penney continues to improve.
ReplyDeleteTo be blunt, I don't even remember the last time I actually bought something from J.C Penney. Its usually always at the entrance of the malls I go to but I just walk through them to get to the stores I actually want to go to. Perhaps their problem is that their too generalized because in my experience people usually know what kind of clothes they want before they go shopping plus coupled along with the fact that there are so many other stores similar to J.C Penney it just becomes another Macy's or Carson's. I believe they should merge with other similar companies and cut their losses.
ReplyDeleteI was curious to see what mistake JCP had made that caused such a loss in sales. It seems that before this reinvention, JCP had been losing customers. They had the idea to bring in a famous merchandiser, whose idea was to get rid of sales, and simply decrease prices. However many customers who still shopped at Pennys appreciated the previous sales and stopped shopping.
ReplyDeleteI think that this is a positive move for JCP, I think that this could definitely help them reduce the amount of debt that they have especially if the space that they are occupying is no longer necessary.
ReplyDelete