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Time running out for J.C. Penny
Financial Post ^ | 11/12/2012 | Jonathan Ratner

Posted on 11/13/2012 3:34:59 AM PST by tobyhill

J.C. Penny Co. was hit with a downgrade at Credit Suisse as the retailer’s sales continue to slow.

Analyst Michael Exstein lowered his rating to underperform from neutral and cut his target price to US$15 from US$25 after the company reported its fifth straight quarterly loss on Friday.

Mr. Exstein noted that J.C. Penny’s cash position continues to dwindle and it is expected to generate only a minimal amount of EBITDA in 2012 and 2013. The company has already sold US$525-million in non-core assets this year.

“Time is no longer on J.C. Penny’s side, and going into the fourth quarter and beyond, we are concerned that J.C. Penny’s technological overhaul of both its back and front end systems could serve to create an even more challenging internal environment than is the case today,” the analyst told clients.

(Excerpt) Read more at business.financialpost.com ...


TOPICS: Extended News; News/Current Events
KEYWORDS: 2012; democrats; homosexualagenda; jcp; jcpenny; jcpsux; liberalism; obamanomics; obamasized; pc; retail
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Put a fork in it, it's done! Remember that JC Penny decided to cater exclusively to gays and minorities. I guess that didn't work out for them.
1 posted on 11/13/2012 3:35:03 AM PST by tobyhill
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To: tobyhill

I paid off my credit card with them and don’t buy from them anymore. They have turned too PC.


2 posted on 11/13/2012 3:37:24 AM PST by beckysueb
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To: tobyhill

Just hire a new CEO who doesn’t make it a point to alienate their customer base.


3 posted on 11/13/2012 3:39:00 AM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: driftdiver

It’s too late for that. The current CEO bet the company on his Political agenda and it backfired.


4 posted on 11/13/2012 3:41:09 AM PST by tobyhill
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To: tobyhill

If you take a stand for homosexuality; you have taken a stand against G-d. Good luck with that.


5 posted on 11/13/2012 3:44:44 AM PST by who knows what evil? (G-d saved more animals than people on the ark...www.siameserescue.org.)
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To: tobyhill

C’mon! White people were supposed to tag along and hope some of the coolness rubbed off. The damn racists didn’t come through.


6 posted on 11/13/2012 3:45:56 AM PST by beef (Who Killed Kennewick Man?)
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To: tobyhill

Amazing! According to the article, the department store expects customers to readjust and adapt to them. Not the other way around.

Never, Never shop there.


7 posted on 11/13/2012 3:47:26 AM PST by formosa (consider me galt)
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To: formosa

Done with them a couple years ago. Not one Penny!


8 posted on 11/13/2012 3:49:35 AM PST by LiveFreeOrDie2001 (I'm PISSED!)
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To: tobyhill

Aleinate the base. Where have I seen that strategy before?


9 posted on 11/13/2012 3:50:04 AM PST by central_va ( I won't be reconstructed and I do not give a damn.)
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To: tobyhill

Heather’s two Mommies better hustle over to JCP and buy more Spanx


10 posted on 11/13/2012 3:53:17 AM PST by silverleaf (Age Takes a Toll: Please Have Exact Change)
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To: tobyhill

Since they are pro-sodomy, maybe they can get a bailout.


11 posted on 11/13/2012 4:03:24 AM PST by SoFloFreeper
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To: tobyhill

I believe the name of the company is JC Penney.

I may be wrong.


12 posted on 11/13/2012 4:06:28 AM PST by dforest
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To: tobyhill

Yeah...ours is a dirty rathole. Went in a couple weeks ago for a specialty item and was appalled at the condition of the store and the attitude of both staff and shoppers.

Great business model they decided on. Eschew the people with money and cater to those who do not have it. Force your beliefs down everyone’s throats then act all surprised when folks vote with their wallets.

Buh-bye...


13 posted on 11/13/2012 4:14:20 AM PST by Adder (Holy Crap! Now what?)
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To: driftdiver

The customer base is white middle class, middle aged, Americans whose incomes are declining due to globalization, real but unreported food and energy inflation, and increasing unemployment or underemployment. Plus the demographic wave is reducing rapidly their economic and political importance.

New management is trying unsuccessfully to reposition the store to attract new customers and is alienating its core customers with the new image and pricing strategy. Kohls, Target, Goodwill Stores, local consignment shops, and Walmart are embracing the traditional JCP customer seeking good value. New management is learning that once their core customer finds better options they don’t come back.

JCP has experienced several new turnaround CEO’s over the past 20 years. Each tried to modernize the image and product assortment to attract new customers. In the process of bringing in new merchandisers, buyers, and product development people to chase the new customers they exited the long term employees who understood how to serve the core customer. Now enough institutional knowledge has been lost that another CEO isn’t going to help. JCP will join Montgomery Wards, Woolworth’s, Circuit City and other formerly great retailers in the dustbin of history. The invisible hand of capitalism is at work.

When leadership of an organization begins to focus on new constituencies to the exclusion of its loyal core base the organization almost always loses momentum, vitality and appeal. It is rare when a new strategy delivers new customers more rapidly than it alienates the base. The rules of the retail marketplace apply also to the marketplace of ideas as the Republican establishment seems destined to learn. One truism in business — it is always easier to sell more to your existing customers than to find, attract, and sell new ones.


14 posted on 11/13/2012 4:14:39 AM PST by Soul of the South
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To: dforest

You are correct. The writer of this article and/or the editor really screwed up.


15 posted on 11/13/2012 4:14:46 AM PST by rightwingintelligentsia (Be careful of believing something just because you want it to be true.)
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To: tobyhill

Barackoclaus America.


16 posted on 11/13/2012 4:15:09 AM PST by originalbuckeye
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To: tobyhill

Their stupid idea of not having sales, has pushed them over the cliff.


17 posted on 11/13/2012 4:23:47 AM PST by nuconvert ( Khomeini promised change too // Hail, Chairman O)
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To: tobyhill

Looks like it`s time for JCP to expand their targeted customer base to bestials and pedophiles.

My schadenfreude meter is wayyyy up on this one.


18 posted on 11/13/2012 4:42:17 AM PST by ScottinVA (I've never been more disgusted with American voters.)
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To: tobyhill

Yep. Adios, JCP.


19 posted on 11/13/2012 4:48:40 AM PST by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: Soul of the South

From your mouth, to the RNC’s ears.


20 posted on 11/13/2012 4:51:32 AM PST by Vide
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To: dforest

Yep, this guy can’t spel


21 posted on 11/13/2012 4:57:15 AM PST by bigbob
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To: tobyhill

I have not bought one item from JC Penny since they declared their support of the gay agenda.


22 posted on 11/13/2012 5:01:22 AM PST by SumProVita (Cogito, ergo....Sum Pro Vita - Modified Descartes)
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To: Soul of the South
JCP will join Montgomery Wards, Woolworth’s, Circuit City and other formerly great retailers in the dustbin of history.

Sears will be joining them in the dustbin soon after, I'm afraid. I went to the store near me here in north Texas last week, looking for something in the hardware department - only to find that two-thirds of the ceiling lighting fixtures were shut off. This was during business hours, and the entire first floor was like a cave. I asked a cashier about the lights and got only a downcast expression and a shrug in response.

Despite some seasonal displays - Christmas decorations and such - there was no sign of staffing-up for holiday sales. If anything, there are even fewer employees than last summer.

This was not a store that Sears listed a planned closure when that list came out some months ago.

23 posted on 11/13/2012 5:01:59 AM PST by Charles Martel (Endeavor to persevere...)
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To: SumProVita

Make that JC Penney where I haven’t shopped for anything.


24 posted on 11/13/2012 5:03:15 AM PST by SumProVita (Cogito, ergo....Sum Pro Vita - Modified Descartes)
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To: tobyhill

One of the fairly new stores near me completely redecorated recently - looks more like a Macy’s inside - guess that was a waste of money.


25 posted on 11/13/2012 5:05:06 AM PST by WhyisaTexasgirlinPA (The DNC loves abortion so much they will now be called the D&C)
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To: tobyhill

One of the fairly new stores near me completely redecorated recently - looks more like a Macy’s inside - guess that was a waste of money.


26 posted on 11/13/2012 5:05:06 AM PST by WhyisaTexasgirlinPA (The DNC loves abortion so much they will now be called the D&C)
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To: tobyhill

It’s a shame what it’s come to. Back a few years ago, it was a great place to shop for clothing that was not super low cut (tops and bottoms), provocative or “slutty”. Hard to find decent looking attire these days for middle aged conservative women.


27 posted on 11/13/2012 5:16:37 AM PST by Grumpybutt (Pray for our troops!!)
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To: tobyhill

I still have the memories of a once-family oriented establishment with quality merchandise and decent prices. Let them live on, and let this rotting corpse die. The two are not connected.


28 posted on 11/13/2012 5:17:30 AM PST by fwdude ( You cannot compromise with that which you must defeat.)
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To: tobyhill

Its all gay, all the time

And if you aren’t on board, you are a “hater.”


29 posted on 11/13/2012 5:19:07 AM PST by PGR88
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To: tobyhill

Sodomite destroy everything they touch, Christian denominations, schools, neighborhoods, and now entire business empires.

Maybe this is by design. They WANT to destroy any image that is even remotely connected with decency and family.


30 posted on 11/13/2012 5:20:35 AM PST by fwdude ( You cannot compromise with that which you must defeat.)
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To: fwdude

called my local Penney’s last year when they used Ellen to promote their products, and told them I would no longer buy them as long as they were promoting that lifestyle - shoulda seen the feedback on Facebook! entertaining to say the least....


31 posted on 11/13/2012 5:27:00 AM PST by nevermorelenore
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To: tobyhill

HOMO-cide.


32 posted on 11/13/2012 5:28:10 AM PST by Polyxene (Out of the depths I have cried to Thee, O Lord; Lord, hear my voice.)
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To: tobyhill
I have never seen such a dumbass business decision in my life!

It's like Obama burning down the US!

33 posted on 11/13/2012 5:28:43 AM PST by sirchtruth (Freedom is not free.)
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To: tobyhill
How serious do you take an article that misspells "J. C. Penney"?
34 posted on 11/13/2012 5:32:56 AM PST by Tanniker Smith (Rome didn't fall in a day, either.)
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To: tobyhill
We have the power.

Let's use it to shut down the MSM by boycotting their sponsors.

35 posted on 11/13/2012 5:34:32 AM PST by St_Thomas_Aquinas (Viva Christo Rey!)
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To: tobyhill

I was just thinking JCP should support the homos some more. That’s sure to make them profitable. I mean, homos make up at least two-percent of all consumers.


36 posted on 11/13/2012 5:36:05 AM PST by AD from SpringBay (We deserve the government we allow.)
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To: Charles Martel
All of our local stores look like that. Even the big Macys downtown. That store used to occupy 12 floors of a good size building. Now everything is squeezed into 7 floors. A number of departments were discontinued and the few specialty departments like the fur salon have been significantly downsized. Kmart and Wal-Mart look more upscale.

These days I do a lot more shopping online, and that may be where some retailers are headed. Probably saves these struggling companies money. There go more jobs.

37 posted on 11/13/2012 5:36:13 AM PST by fatnotlazy
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To: AD from SpringBay

I’ll bet there are some interesting mannequins in JCP.


38 posted on 11/13/2012 5:42:52 AM PST by central_va ( I won't be reconstructed and I do not give a damn.)
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To: tobyhill

Taste the Rainbow!!

39 posted on 11/13/2012 6:00:35 AM PST by 2ndDivisionVet (You cannot invade the mainland United States. There would be a rifle behind every blade of grass.)
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To: tobyhill

Good!


40 posted on 11/13/2012 6:02:42 AM PST by sport
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To: tobyhill

Too bad, but it’s their own fault

30 years ago I bought most of kids clothes there. Reasonable price, decent quality. They used to have an overstocked catalogue where I bought most of my clothes for work at incredible prices. If it wasn’t for that, I don’t know what I would have done.

Since the store in my town closed, I haven’t bought anything there in years.


41 posted on 11/13/2012 6:09:30 AM PST by KosmicKitty (WARNING: Hormonally crazed woman ahead!!)
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To: Charles Martel

“Sears will be joining them in the dustbin soon after, I’m afraid.”

Sears is owned by Eddie Lampert. He heads his own private equity “investment” firm, not unlike a recent candidate for President of the United States. His investment strategy consists of purchasing tired company, stripping them of assets, firing workers to cut costs and then milking them until they no longer produce cash. His business plan is to flip the company or shut it down and harvest the remaining assets leaving the bondholders and former employees holding the bag. Investment to Eddie is all about putting money into his pocket, not into the businesses he purchases. Forbes estimates his net worth at $3.1 billion and you don’t get that kind of money by reinvesting the cash collected at Sears into freshening up the store.

Early in his career he worked at Goldman Sachs, the large investment bank that profits from selling bonds for the US treasury as well as financing private equity firms and other firms. He is sometimes compared to Warren Buffet, although Buffet does actually allow his companies to reinvest some of the cash they generate into operations. Unfortunately, Eddie is more typical of today’s financier.

Lampert purchased struggling Kmart and Sears. He merged the two companies in 2005 and has been slowly bleeding them of cash and assets, closing store locations and making no investments to upgrade the appearance of the stores. Each year since he has owned them sales have declined. Most locations today are tired and shopworn, understaffed, and thinly inventoried. Low store customer count is another defining characteristic of his stores. So is high management turnover in the organization.

Sears does still own some good real estate. Recently Eddie has started harvesting the real estate without closing the store. The freestanding Sears store at Friendly Center in Greensboro, NC has been dramatically downsized so that part of the store can be leased out for a new Whole Foods store. Perhaps Eddie believes the affluent young premium food store shoppers will stop next door to buy a Craftsman lawn tractor or cheap clothing on the way to or from the grocery. If not, he can shut the remaining Sears portion of the store down and lease it out.

If someone studied the private equity boom in the US over the past 30 years, they would likely find it has been more about stripping assets from viable companies, laying off employees, and offshoring operations in order to make a few raiders such as Eddie Lampert and his Wall Street bankers fabulously wealthy than it has been investing in assets to spur economic growth. For good reasons that study will not be funded and the story will not be written. However, those citizens who have been downsized when a private equity firm purchased their company, or who have eyes and can see the once great firms like Sears reduced to shells, know the truth. The rest will continue to believe the Bain Capital Staples story is typical of the private equity world.


42 posted on 11/13/2012 6:19:52 AM PST by Soul of the South
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To: Soul of the South

Interesting...


43 posted on 11/13/2012 6:47:56 AM PST by Sir Francis Dashwood ("Arjuna, why have you have dropped your bow???")
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To: tobyhill

Our local Penneys around Hampton Roads, VA have black employees predominately who probably voted for Obutthead...
When these stores fold, they will be the ones to suffer...
Thanks to their vote...
But we will be supporting them...thanks to their vote....
I don’t think things will end well.


44 posted on 11/13/2012 6:54:29 AM PST by matginzac
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To: tobyhill

Since JC Penny is a feature in most malls in our part of the world, I habitually walk through Penny because I park on that side of the mall for easy exit to the roads that take me home.

The bottom line is that I’ve really noticed little difference in what they are. Their entire first floor that I see is stuffed full of clothing. Racks and racks of clothing.

If they have any real shortfall it’s that each end of season they still have racks and racks of the same stuff that has NOT been bought that is now at 60-70% off.

The bottom line for JC Penny strikes me as the same for an entire decade....people aren’t snatching up what they’re selling OR they seriously overbuy OR both.

On top of that they’ve alienated an entire group of buyers when they could have just been quiet on the subject.

ALL of the above adds up to a store that’s barely making it.


45 posted on 11/13/2012 7:03:47 AM PST by xzins (Retired Army Chaplain and Proud of It! True supporters of our troops pray for their victory!)
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To: Charles Martel

Our only Sears store is closing. I remember showing my parents what I wanted from the Wish Book when I was a kid; it’s always been a fixture. The store is one of the last anchor stores in our shopping mall; when it goes, the whole place will be on its way to being a ghost town.


46 posted on 11/13/2012 7:06:27 AM PST by CatherineofAragon (The idiocracy has come home to roost. God help us.)
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To: tobyhill

re: we are concerned that J.C. Penny’s technological overhaul of both its back and front end systems

= = = = = = = = = = = = = =

Well, since they became big supporters of “back end systems,” I quit shopping there.


47 posted on 11/13/2012 7:15:58 AM PST by doug from upland (Obama and the leftists - destroying our country one day at a time)
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To: tobyhill

re: we are concerned that J.C. Penny’s technological overhaul of both its back and front end systems

= = = = = = = = = = = = = =

Well, since they became big supporters of “back end systems,” I quit shopping there.


48 posted on 11/13/2012 7:17:44 AM PST by doug from upland (Obama and the leftists - destroying our country one day at a time)
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To: tobyhill

J C Penny used to be on every town square like Woolworth.

Now it is rare to see either one. The last local Penny here closed about ten years ago. The nearest Penney is now 40 miles from here and I haven’t been to that mall for years.

Looking at some old 60 year old photos of a town I used to live in showed a J C Penny on the main street. It closed many years ago, long before Walmart ever opened a store. The nearest Walmart to that town is 100 miles away so it was not Walmart that drove them out of business.


49 posted on 11/13/2012 7:52:53 AM PST by Ruy Dias de Bivar (The parasites now outnumber the producers.)
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To: dforest

“I believe the name of the company is JC Penney.

I may be wrong.”

Yes, friend Forest, you have it a little bit wrong.

The company’s new name is Gay C. Penney.


50 posted on 11/13/2012 8:27:23 AM PST by mywholebodyisaweapon
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