Macy’s, Inc (NYSE:M) & J.C. Penney Company Inc (NYSE:JCP) Trying Different Things
The past couple of years have been very shaky for the retail industry. Unemployment levels have been at all-time lows and consumers have been very thrifty with their spending patterns. But things have been changing gradually and Macy’s, Inc (NYSE:M)’s one company that has proved its resilience and withstood all the storms in the retail sector.
The primary reason for this is that the company has a very affluent customer-base and now it is forging ahead into the athletic garment segment. Apart from that, it is also pretty cheap in comparison to its peers.
The athletic apparel market is all set for a boom in the future. The company had brands such as Under Armour and Nike at its stores. Another notable initiative is the concept of selling LIDS Sports merchandise. These sales will take place via Locker Room and the store-in-store concept is something that might just work well.
The J.C. Penney Company, Inc (NYSE:JCP) story
On the other end of the retail scale is J.C. Penney Company, Inc (NYSE:JCP). The company has had 2 tumultuous weeks. It tried to change investor sentiment on Tuesday by pre-releasing some of its financial-performance numbers. Mike Ullman, the Chief Executive Officer was obviously hoping that an update would help to quell any negative vibes that emerged in the market, against the company.
For a short span, this move seemed like it had hit the target and the stock rose to a high of $8.25 in intraday trading. Investors were reacting to the fact that the sales at stores open for more than a year were showing better results. The company announced that there was an 18.6% rise in its online sales in the Q3 and that just in September alone the units-transaction and the average-transaction value stood above what they had been in 2012.