How Will J.C. Penney Company Inc. (NYSE:JCP) & Groupon Inc. (NASDAQ:GRPN) Capitalize?
J.C. Penney Company, Inc. (NYSE:JCP) seems to have been learning from its peers as it announced to begin offering Thanksgiving Day deals by opening its department stores by 8:00 PM on the night of Thanksgiving Day. Last year the company missed much of the Black Friday rush as it opened its stores by 6:00 AM. But this time JC Penney joins the bandwagon alike other retailers as an ongoing effort to rebrand its new image and lure customers by kicking-off early to welcome the start of holiday season.
During past couple of years Thanksgiving Day shopping has lured great number of customers and has been succeeded in winning peak sales by offering great discounts and the trend is estimated to accelerate for the 2013 holiday season as well. However the recent government shutdown would have its impact on consumer buying behavior as consumers are expected to be cautious and more careful while spending their dollars. According to ShopperTrak, the retails sales are expected to rise just by 2.4% during the 2013 holiday shopping season compared to over 4% increase in 2010 and 2011 and about 3% increase in 2012. Moreover targeting e-commerce and mobile commerce fans will also be of paramount importance for retailers to boost their holiday sales figures.
As more and more consumers are turning to online shopping and looking to spend their dollars wisely, the online coupon offering companies, that connects merchants to consumers by offering great discounts, like Groupon Inc. (NASDAQ:GRPN) are also expected to see a boost. The growth in smartphone users largely attributed to 45% revenue growth in North America for Groupon during 2Q13 as the mobile users accounted for almost 50% of company’s total dealings during the quarter. Groupon is well positioned for future growth as its can benefit from surge in smartphone users as well as transition to online purchasing which is expected to get around $250 billion mark by 2014.