Breaking News
FONT-SIZE Plus   Neg
Share SHARE

J.C. Penny Begins Business Revamp Process - Update

RELATED NEWS
Trade JCP now with 

J. C. Penney Co. Inc. (JCP: Quote) said Thursday it has started the simplification process of its business, in line with a revamp plan revealed last January that would enable it better compete with rivals.

As a first step, J.C. Penney is reorganizing the workforce at its headquarters in Plano, Texas, with plans to close its customer call center in Pittsburgh, Pennsylvania.

The company will adopt a new approach to pricing, promotion, merchandising, blended with a management structure that has fewer layers, wider control and more accountability.

J. C. Penny CEO Ron Johnson said the company will henceforth work like a start up and will adopt a management style based on leadership.

"We are going to operate like a start-up. We are going to extend the reach and span of control of our very best talent...," Johnson said.

Last January, J.C. Penney revealed plans to cut annual costs by $900 million by 2013. The company plans to cut costs to below 30 percent of sales by 2013 and enable an expense run rate of 27 percent by 2015.

Johnson had revealed that store experience will be enhanced by including Main Street - the entire store merchandised in a series of 80 to 100 brand shops. J. C. Penney expects to feature 30 new and transformed brands by the fall of 2012. It will also sport a new logo.

Johnson took over as CEO of J. C. Penny in mid-June 2011 at a time when the company was struggling along with long-time rival Sears Holdings Inc. (SHLD) that has planned the sale of a number of unviable stores.

J.C. Penney in February reported a quarterly loss of $87 million or $0.41 per share, compared to net income of $271 million or $1.13 per share last year. Sales for the quarter slid 4.9 percent to $5.43 billion from last year.

JCP is trading on the NYSE at $35.20, down $0.26 or 0.73%, on a volume of 1.6 million shares.

Register
To receive FREE breaking news email alerts for J. C. Penney Company, Inc and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved notably higher over the course of the trading day on Friday after initially showing a lack of direction. The gains on the day extended the recent upward trend by the markets, with the tech-heavy Nasdaq reaching its best closing level in almost a month. Looking to capitalize on news of an Ebola diagnosis in New York City, Republican Senate candidate Scott Brown issued a statement Friday criticizing his Democratic opponent Sen. Jeanne Shaheen, D-N.H., for "waffling" on a travel ban. In another troubling sign for Democrats, the results of a Gallup poll released on Friday show that Tea Party Republicans are much more motivated to vote in the upcoming midterm elections than other Americans. The poll found that 73 percent of Tea Party Republicans are "extremely" or "very" motivated to vote in this year's elections.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.