J.C. Penney Company Inc. is a company involved in operating stores across the United Sates and Puerto Rico. These stores sell a range of apparel, as well as, home furnishings, accessories, foot wear, hand bags, jewelry, beauty products and bath & bed products. J.C. Penney also provides services such as salons, photography, custom decorating, florists, gift cards and credit cards. Customers are able to shop and access the products and services in stores or online. Their biggest competitors include Macy 's, Kohl 's and Sears. (Global Data) In 2011 Ron Johnson was appointed CEO of J.C. Penney. Johnson entered the position and began to change J.C. Penney 's Strategy which ultimately led to annual sales dropping 6 billion dollars. Johnsons new
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Penney 's weaknesses include Declining profitability and lower inventory turnover ratio. Although J.C. Penney is going to great lengths to get back to where they were the fact that their profitability was declining so fast and so greatly, this is a real weakness for them because it may reduce investor 's confidence and may have a negative impact on its growth prospects in the future. J.C. Penney 's inventory turnover ratio has declined and is lower than its competitors. This indicates that the company takes more days to clear and sell its inventory than its competitors. This signifies that the company incurs high inventory carrying costs which affects its operating performance. (Global …show more content…
Penney will first differentiate their product . J.C. Penney plans on the expansion of special sizes by leveraging in house design and trend teams to deliver quality plus size, petite and big & tall apparel. The apparel that is offered will meet the lifestyle need of many different people and different body types. There are also plans of revitalizing home store by rolling out major appliance showrooms to nearly 500 locations as well as online. New furniture and appliance brands will be tested as well such as empire today flooring and Signature Design by Ashley. There will also be an expansion and emphasis on fine jewelry and women’s beauty. As mentioned previously, J.C. Penney is expanding the number of Sephora’s in 60 stores. There will be an assortment of brands that include many that can only be found at J.C. Penney.
Penney 's weaknesses include Declining profitability and lower inventory turnover ratio. Although J.C. Penney is going to great lengths to get back to where they were the fact that their profitability was declining so fast and so greatly, this is a real weakness for them because it may reduce investor 's confidence and may have a negative impact on its growth prospects in the future. J.C. Penney 's inventory turnover ratio has declined and is lower than its competitors. This indicates that the company takes more days to clear and sell its inventory than its competitors. This signifies that the company incurs high inventory carrying costs which affects its operating performance. (Global …show more content…
Penney will first differentiate their product . J.C. Penney plans on the expansion of special sizes by leveraging in house design and trend teams to deliver quality plus size, petite and big & tall apparel. The apparel that is offered will meet the lifestyle need of many different people and different body types. There are also plans of revitalizing home store by rolling out major appliance showrooms to nearly 500 locations as well as online. New furniture and appliance brands will be tested as well such as empire today flooring and Signature Design by Ashley. There will also be an expansion and emphasis on fine jewelry and women’s beauty. As mentioned previously, J.C. Penney is expanding the number of Sephora’s in 60 stores. There will be an assortment of brands that include many that can only be found at J.C. Penney.