|
75%
agree
127 votes
|
New market growth away from malls |
|
66%
agree
3 votes
|
Pershing Square hedge fund manager endorses and starts new activist position in JCP |
|
52%
agree
19 votes
|
Cycle time reduction initiative will bring products faster |
|
51%
agree
68 votes
|
Company's efforts to cut costs are running out of room |
|
30%
agree
42 votes
|
Looking at a decline in the market |
|
8%
agree
24 votes
|
JCP won't recover from previous missteps |
June 20, 2013
J.C. Penney (NYSE: JCP) is a leading department store retailer of apparel, accessories and home furnishings. They produce their own private brands in addition to selling products from other companies.
The company has faced changing consumer tastes in the past years--consumer traffic is being drawn to Wal-Mart (WMT) and Target (TGT) at the expense of department stores such as J.C. Penney and Macy's Inc. (M). In addition, J.C. Penney relies heavily on private labels[1] Although private label products--in order to appeal to as many customers as possible--are not unique enough to compel fashion-conscious consumers to purchase them, they are still a viable option for customers who do not follow trends. JCP also faces lower profit margins in the due to rising commodity costs which will increase its clothing costs.
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