Omnichannel Approach Is Working For J C Penney Company Inc (JCP)
J C Penney Company Inc (NYSE:JCP) is slowly finding its footing in the retail business after years of concerns filled with uncertainty over its long-term prospects. The retail chain overcoming a broader slump in chain store sales last year could be an indication of what to expect going forward. The same also continues to underscore how effective the omnichanel approach has panned out for the company.
JCP Omnichannel Approach
Chief Executive Officer, Marvin Ellison has already attributed a 3.9% increase in same-store sales in November and December to the omnichanel approach. Revamping the company’s supply chain and technology has been Ellison big play. Selling more private brands also continues to work for the company driving sales momentum. For the fiscal year ending this month, J C Penney Company Inc (NYSE:JCP) expects its adjusted earnings to come in at $645 million
Through the omnichanel approach, J C Penney Company Inc (NYSE:JCP) is making it easy for consumers to buy goods on-or-offline. it was not a fairy tale for other retailers even on JCP posting a 3.7% increase in holiday sales compared to the previous year,
Macy’s, Inc. (NYSE:M)’s did not have the best of runs this holiday season having seen its same-store sales tank by 4.7%. The decline was down to most parts of the US experiencing warmer holiday season than before considerably affecting sales of jackets and boots.
The nation’s largest retailer performance has continued to tank even on announcing plans to close down 40 stores. The chain has also announced plans to fire or relocate as many as 3,000 employees as it tries to bolster its profit margins. It is also in the process of spinning off some of its real estate holdings including the West 34th Street landmark building in Herald Square.
J C Penney Company Inc (NYSE:JCP)’s performance this holiday season continues to fuel optimism that the company’s turnaround plan is well on track. The retailer has already echoed optimism of being able to generate positive cash flow this year. As it appears, the company is on the right track on its transformation after failing to register any form of growth under the leadership of Ron Johnson back in 2012.
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