J.C. Penney is trying to reinvent itself again — by restructuring its operations and cutting 300 jobs.
The retail icon’s restructuring plans came as the company reported disappointing same store sales and a lackluster sales outlook last week.
The retailer is striving to overcome the disastrous effects of a major reinvention it underwent seven years ago under celebrity CEO Ron Johnson. In a radical departure from the rest of the industry back then, JCP changed its pricing strategy in a couple of ways. One of them was the elimination of coupon discounts. Another was the modeling the company’s stores after those of Apple, which included changes in floor merchandise, and the addition of boutiques/streets.
Apparently, these changes didn’t work. That’s evidenced by the company’s sluggish sales and a prolonged decline of its shares on Wall Street.
To be fair, Johnson’s successors have undone many of his policies. Like bringing back discounts, changing product offerings, streamlining management and cutting scores of jobs. But they have yet to bring back the hype and buzz for this iconic retailer.
And cutting jobs won’t bring the buzz back either.
Here’s the reason: retail space has changed dramatically in the last six years. Amazon and other online retailers have continued to chip sales away from traditional retailers, tapering revenue growth and squeezing operating margins.
J.C. Penney’s and Macy’s Financials, 3/3/2018
| Company | Operating Margins | Qtrly Revenue Growth (yoy) | Qtrly Earnings Growth (yoy) | Total Debt | Total Cash | Operating Cash Flow |
| J.C. Penney | 2.09 | -1.80 | — | $4.5B | 185M | 552M |
| Macy’s | 6.55 | -6.10 | 111.80 | 6.32B | 534M | 1.88B |
Source: Finance.yahoo.com
J.C. Penney’s and Macy’s Financials, 2/24/2017
| Company | Operating Margins | Qtrly Revenue Growth (yoy) | Qtrly Earnings Growth (yoy) | Total Debt | Total Cash | Operating Cash Flow |
| J.C. Penney | 0.98 | -1.40 | — | $4.83B | 183M | 455M |
| Macy’s | 7.46 | -4.20 | -85.60 | 7.50B | 1.5B | 2.01B |
Source: Finance.yahoo.com
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J.C. Penney is trying to reinvent itself again — by restructuring its operations and cutting 300 jobs.
The retail icon’s restructuring plans came as the company reported disappointing same store sales and a lackluster sales outlook last week.
The retailer is striving to overcome the disastrous effects of a major reinvention it underwent seven years ago under celebrity CEO Ron Johnson. In a radical departure from the rest of the industry back then, JCP changed its pricing strategy in a couple of ways. One of them was the elimination of coupon discounts. Another was the modeling the company’s stores after those of Apple, which included changes in floor merchandise, and the addition of boutiques/streets.
Apparently, these changes didn’t work. That’s evidenced by the company’s sluggish sales and a prolonged decline of its shares on Wall Street.
To be fair, Johnson’s successors have undone many of his policies. Like bringing back discounts, changing product offerings, streamlining management and cutting scores of jobs. But they have yet to bring back the hype and buzz for this iconic retailer.
And cutting jobs won’t bring the buzz back either.
Here’s the reason: retail space has changed dramatically in the last six years. Amazon and other online retailers have continued to chip sales away from traditional retailers, tapering revenue growth and squeezing operating margins.
J.C. Penney’s and Macy’s Financials, 3/3/2018
| Company | Operating Margins | Qtrly Revenue Growth (yoy) | Qtrly Earnings Growth (yoy) | Total Debt | Total Cash | Operating Cash Flow |
| J.C. Penney | 2.09 | -1.80 | — | $4.5B | 185M | 552M |
| Macy’s | 6.55 | -6.10 | 111.80 | 6.32B | 534M | 1.88B |
Source: Finance.yahoo.com
J.C. Penney’s and Macy’s Financials, 2/24/2017
| Company | Operating Margins | Qtrly Revenue Growth (yoy) | Qtrly Earnings Growth (yoy) | Total Debt | Total Cash | Operating Cash Flow |
| J.C. Penney | 0.98 | -1.40 | — | $4.83B | 183M | 455M |
| Macy’s | 7.46 | -4.20 | -85.60 | 7.50B | 1.5B | 2.01B |
Source: Finance.yahoo.com
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