Is There Ray Of Hope For J.C. Penney Company, Inc (NYSE:JCP)?

Posted by Nathan Alexander October 4, 2013 0 Comment 1376 views

Myron Ullman, J.C. Penney Company, Inc (NYSE:JCP)’s Chief Executive Officer is bringing in a Jan Hodges, a 25-year veteran to the helm of the company’s department-goods section. The company has been struggling to revive sales and hope that Hodges experience and ideas will bring a breath of fresh air into the workings of that department.

The veteran

Effective 1 November, she will be the new senior vice-president and general-merchandise manager for the home-goods department. Hodges is a senior marketing-executive who will start working on improving the flagging sales figures. The department brought in revenue of only 12% in the last financial year in comparison with the 21% in 2006.

Strategy change

Prior to Hodges, Paul Rutenis held this post and left the company only 14 months after he took up this job. J.C. Penney Company, Inc (NYSE:JCP) is trying every trick in the book to revive its flagging sales and has spent millions of dollars on renovating the company’s home-goods sections at 500 of the 1,100 stores it owns. As part of this overhaul, brands such as Martha Stewart, Michael Graves and Jonathan Adler have also been anchored at the stores.

Disappointing sales

The August sales reports were very disappointing and J.C. Penney Company, Inc (NYSE:JCP) started bringing in other low-priced merchandise and also started stocking products and goods by product category instead of following the brand-stocking strategy. Hodges has been with the company since 1988 and prior to this position she has been head of the women’s intimates and accessories department and has held other merchandising jobs as well.

Thursday’s trading session

In Thursday’s trading, J.C. Penney Company, Inc (NYSE:JCP) dropped by 3.56%. The shares opened at a price of $8.69, climbed to an intraday high of $8.78 and dipped to a close of $8.41.

About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

View all post by Nathan Alexander Visit author's website

Write Your Comment