Jump to content

JCP - JC Penney


farnamstreet

Recommended Posts

  • Replies 605
  • Created
  • Last Reply

Top Posters In This Topic

 

I am still confused why so many people are so interested in JCP at current prices?

JCP's price/sales is 0.28, while SHLD's price/sales is 0.14.

This means even if JCP could turn around, it has to achieve twice the profit margin in order to have the same upside as SHLD. How likely is it?

WMT's price/sales is 0.55, so even if JCP could turn around and achieve the same profit margin, it is merely a double. The upside is so small and downside is so big.

Link to comment
Share on other sites

  • 2 weeks later...
  • 2 weeks later...

 

Maybe they need to expand this line of housewares.  "The Adolf Collection, available now only at JC Penny".

 

"According to J.C. Penney, any resemblance to Hitler certainly hasn’t hurt business.

The $40 teakettle is advertised as having features like its “cool-touch handle, space-saving design and a delightful whistle.”

In a Tweet to the comedian Patton Oswalt, who asked about obtaining one of the teapots, the company said that it has sold out online."

--Heil, Hitler teapot attracting lots of attention

 

Link to comment
Share on other sites

JCP can't win.  First they were criticized for adopting an honest, straight-forward "everyday low prices" pricing strategy.  The dumb customers and media pundits didn't like it, so they have now switched back to a "mark-up then mark-down" pricing strategy that will allow dumb customers to feel like they are getting a deal.  And now they are getting criticized for the mark-up then mark-down strategy they've gone back to.  Watch this WCPO news report out of Cincinnati, Ohio.

 

Link to comment
Share on other sites

  • 1 month later...

J.C. Penney Improves in Back-to-School Web Traffic

 

Retailer Rises to No. 2 Spot on Experian Marketing List.

 

http://online.wsj.com/article/SB10001424127887324809004578638360486796632.html?mod=WSJ_business_whatsNews

 

 

JCPenney.com has been ranked as No. 2 since July 13, only after Wal-Mart Stores Inc.'s WMT +0.55%website, among the top online retail sites for back-to-school shoppers, according to research firm Experian Marketing Services. That places Penney's site above that of rivals Macy's Inc., M +1.29%Amazon.com Inc. AMZN +0.23%and Target Corp., TGT +0.63%the search-traffic data show.

 

By comparison, last year Penney didn't even receive enough back-to-school search traffic for it to rank among the top 10 sites, Experian said.

 

 

Link to comment
Share on other sites

I'm surprised there isn't more discussion on JCP here. I've following the name since Ackman's initial involvement but never felt comfortable with Ron Johnson's strategy (although there was a chance it could have been a super home run).  I've started to buy shares here.. I understand that a lot of money has been "wasted" and it is possible that there was so much damage done that JCPenney's core customer is never coming back -- this is obviously the risk.   

 

Ron Johnson himself said that JCPenney's customer were addicted to coupons like drug addicts. What did he think the customer response would be when he took their "drugs" away?  The Home store which was about 18% of sales in 2010 were essentially closed in half their stores for quite a while. Johnson also eliminated some of JCP's core brands that JCP's core customers bought (but did not fit in with his new vision for the store). What did he think was going to happen to sales given the above. It seemed as if Johnson thought he had an unlimited checkbook and that is goal was to make JCP the mall version of the Apple Store (aesthetically).

 

Now there are some nice things he has done for JCP. First and foremost he implemented what seems to be a nice cost cutting plan.  Second he upgraded their IT systems such that after everything is upgraded there should be substantial cost savings/efficiencies realized.  With this new cost structure/efficiency -- unless their core customers are permanently gone, I don't see why Ullman can't bring JCP sales to where they were pre Ron Johnson eventually -- running their old playbook (even if it takes a while to get the merchandise right -- they may have even more disastrous quarters b4 they get there).  if Ullman gets sales simply back where they were pre-Johnson the stock is an easy double and maybe more from here.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...