Hard times at JC Penney

[marmar]

Struggling department-store retailer JC Penney on Thursday reported operating margins plunged in the first quarter on weak sales and heavy clearance deals, as its new chief executive promised more promotions and a return to basics to win back shoppers.

JC Penney shares wavered following the news.

Penney, struggling with mass customer defections after a failed strategic shift by former Chief Executive Ron Johnson, said gross margins came in at 30.8 percent, nearly 7 percentage points lower than a year earlier. Total sales and same-store sales both posted double-digit declines, in line with the company's warning last week.

Myron Ullman returned to Penney as CEO last month to stabilize the company, which suffered a 25-percent drop in sales last year after Johnson tried to wean the retailer's price-conscious customers off coupons. ....................(more)

The complete piece is at: http://www.cnbc.com/id/100740400

[MADem]

1. I have never been to a JC PENNEY.

There isn't one near me. The ads look perky, though.

They should push an online presence and offer free shipping.

[Honeycombe8]

2. I should shoot them an e-mail and give 'em some tips. I'm one of the customers they lost.

I'm not angry with them or anything. And it wasn't intentional. But I started finding what I wanted at other online shopping sites. Maybe I should let them know what it would take to get me back.

I do a lot of online shopping (to the extent I do shopping), because I don't have time to go around and personally look for things. And you get fabric content, dimensions, and other specs on the net, but you don't always in the store.

But they did lose me as soon as they changed their business model.

[stopbush]

3. Ron Johnson killed that company and walked away with tens of millions.

It is not coming back. it's over.

[ohheckyeah]

4. JC Penney used to be my go to place for

leather purses then they decided to carry nothing but vinyl crap. They also started putting out rack after rack of 2 and 3 year old stuff that didn't sell. It looked worse than the local TJMaxx.