Today's Wall Street Journal has an article about the cost-cutting measures going on retailer, JC Penney (NYSE: JCP). The article, essentially an interview with CEO and Chairman, Myron "Mike" Ullman III, details Ullman's changing of gears, from aggressive store expansion and online growth to scaling back in the face of a looming recession.
The CEO is expected to announce today plans to merge the buying and marketing operations for store and online sales, cutting as many as 200 jobs.
In the article, Ullman says he may scale back store expansion over the next two years.
Getting more of the consumer's wallet
Ullman says, "Half of the families in the U.S. shopped with us at least once last year. But we only get 7% of their spending. So, our biggest opportunity in the downturn is to make every visit they make to our store, Internet or catalog more productive by offering more innovation."
Expanding product lines
Ullman says that Penny's is still planning to launch its much vaunted new product line, American Living, with Polo Ralph Lauren (NYSE: RL). "We think it's a billion-dollar idea...American Living is J.C. Penney.'"
Ullman has been the conductor of a growing retail orchestra. While 2007 was a tough year for the retailer, JC Penny has turned its stores around, its product assortment has been refreshed, and Ullman seems to have a handle on where the consumer and market is going.
2008 should prove to be a pivotal year for this retailer.
Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.
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Reader Comments (Page 1 of 1)
1-31-2008 @ 5:34PM
Hugh McManus said...
JCP is a great store to find great prices. If some of you have not visited JCP then I suggest you do and save big on quality items. I do most of my shopping there and they always have great sales.
2-07-2008 @ 10:46PM
Tracy Foster said...
After all these years you would think that JCP has figured out that the public does not perceive this department store chain in the same league as Dillard's, Macy's, or Nordstrom's, but rather Sears. Given that, the prices are far too high for most of those who enter their stores.
An outside study was conducted more than 10 years ago and the video was shown to all Home Office employees. The gasps from upper management when hearing candid remarks from visitors to a mall were stunning. The low-paid clerical help could have saved them the money if only someone had taken the time to listen. Apparently, JCPenney still isn't listening.
2-08-2008 @ 1:56AM
Tracy Foster said...
After all these years you would think that JCP has figured out that the public does not perceive this department store chain in the same league as Dillard's, Macy's, or Nordstrom's, but rather Sears. Given that, the prices are far too high for most of those who enter their stores.
An outside study was conducted more than 10 years ago and the video was shown to all Home Office employees. The gasps from upper managment when hearing candid remarks from visitors to a mall were stunning. The low-paid clerical help could have saved them the money if only someone had taken the time to listen. Apparently, JCPenney still isn't listening.