Then, the internet exploded, with Amazon at the helm. Penney was late to adapt and invest in its stores. The Covid crisis only exacerbated many of the challenges it was already facing, including an overhang of debt. Penney's annual net sales contracted 8. That followed a 7. Some thought Penney would reap the rewards of Sears' demise. Sears, another American retail icon, has been shuttering stores for years and filed for bankruptcy in October But still, Penney finds itself in a sales slump, battling TJ Maxx , Target, Macy's and others — in apparel, appliances and home goods.
This past holiday season, sales online and at Penney stores open for at least 12 months were down 7. Overall department store sales decreased 1. The drop happened even as holiday retail sales overall grew 4. And as retail sales tumbled Census Bureau. In , department store operators accounted for Canton Supervisor Anne Marie Graham-Hudak said the township just recently found out about the store's closure as well.
She said they had gotten word a major retailer was planning on closing, but were not informed of which one it was.
She said she realized it was JCPenney when she went to the store last weekend and saw plenty of deep discounts on merchandise. It's one of our anchor stores along Ford Road," Graham-Hudak said.
The store is the lone JCPenney in metro Detroit closing its doors as a part of the restructuring. The company filed for Ch. Penney burned through cash under Johnson and got bogged down in an expensive and public legal fight with Macy's over selling Martha Stewart's kitchen line. With its stock in the dumps and its balance sheet damaged, Penney ousted Johnson in mid, just 17 months after he took over. Stuck in mediocrity. Penney turned back to Ullman, the former CEO, for help. He slammed the brakes on Johnson's strategy, and reinstated coupons and old brands.
As rivals adopted digital strategies and invested to improve their store experiences, Penney's financial distress gave it little room to spruce up stores, buy trendy merchandise, and hire more employees. These rewards programs are actually worth your time and money. Although Penney is known best for selling clothes, it turned to Marvin Ellison, a former top executive at Home Depot, to lead it into the appliance business. Ellison believed the shift would position Penney to take advantage of Sears' collapse, but customers shrugged.
Washers, dryers, dishwashers, and fridges are not major traffic drivers because shoppers only buy them once in a while, and they're expensive to make. Sales fell flat, and Penney's stock slumped further. Ellison also exited Penney with a fashion unit lacking direction and unsure of the type of brands it needed to offer to win over Millennials and moms.
Ellison declined to comment. Penney, which had switched its focus from older shoppers to younger, trendier ones, is now moving back toward middle-aged women, with brands like Liz Claiborne. Jeffrey Davis, the chief financial officer, said the core customer is women over What now? To escape its debt load, Penney would need to regain a chunk of the sales volume it has lost over the years, and do it at a profit.
It is searching for a CEO to replace Ellison and focusing on women's clothing as it works to clear its inventory of brands that have gone out of fashion. Joseph Thomas, a Penney spokesperson, pointed to same-store sales growth last quarter as proof the brand still resonates with shoppers. The company has changed its merchandising strategy, too. It used to buy as much stuff it needed to fill up its stores, but now it's chasing proven sales trends.
Cohen, however, isn't counting on a comeback.
0コメント