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J.C. Penney Warns of Steeper Sales Decline
WSJ.ocm ^ | 5/7/2013 | MIA LAMAR And KAREN TALLEY

Posted on 05/07/2013 4:13:39 PM PDT by South40

J.C. Penney Co. (JCP -3.07%) forecast a sharper-than-expected decline in fiscal first-quarter sales, citing the effect of former Chief Executive Ron Johnson's strategies to turn around the struggling department-store operator.

For the quarter ended Saturday, the company said it expects to post sales of roughly $2.64 billion, a 16% drop from the prior year. Analysts polled by Thomson Reuters expect sales of $2.74 billion, or a 13% decline.

Same-store sales were estimated to be down 16.6%, after falling 18.9% a year earlier.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: bhoeconomy; homosexual; jcp; jcpenney; pc; penneys; retail
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Johnson's "strategies" killed the company.
1 posted on 05/07/2013 4:13:39 PM PDT by South40
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To: South40
Johnson's "strategies" killed the company.

And the trajectory is set, even have his leaving.

Most people I know don't trust this store anymore. I don't.

2 posted on 05/07/2013 4:18:08 PM PDT by fwdude ( You cannot compromise with that which you must defeat.)
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To: South40

They have a LONG WAY to go if they EVER want their customer base back. Ignoring Ellen and all that crap simply is not enough, anymore.


3 posted on 05/07/2013 4:25:40 PM PDT by BobL (Look up "CSCOPE" if you want to see something really scary)
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To: South40

Maybe they should double-down on gay activism.


4 posted on 05/07/2013 4:25:52 PM PDT by Lexington Green (Journalists?... or poop-flinging chimps?)
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To: South40

I am so pleased to see this company go down.


5 posted on 05/07/2013 4:29:54 PM PDT by Gator113 ( ~just keep livin~ I drink good wine, listen to good music and dream good dreams.)
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To: South40

Not so fast South40.....

WJS Marketwatch....updated

....Investors breathe a sigh of relief over J.C. Penney....

May 7, 2013, 5:56 PM

As long as there’s no really dreadful news, investors seem to be willing to go easy on J.C. Penney Co. JCP+1.83%.

The retailer reported after the market closed Tuesday that its preliminary fiscal first-quarter sales fell 16% to $2.64 billion. That missed the $2.74 billion consensus estimate posted by FactSet. Comparable sales, meanwhile, dropped 16.6%, also worse than the 11% drop of analysts surveyed by Retail Metrics.

Nevertheless, it’s comforting the sales drop was less than the 25% decline last year.

Also giving investors some solace, the company said it expects cash and cash equivalents at the end of the first quarter (May 4) to be about $821 million.

After ending last year with $930 million in cash and recently tapping $850 million from its revolving credit line, analysts said Penney may have burned less than $1 billion in cash in the first quarter, better than the $1.3 billion burn rate some feared.

“They’ve got enough cash just to make through the summer,” when there are peak cash needs in July and August, said Morningstar analyst Paul Swinand in an interview. He said Goldman Sach’s $1.75 billion in financing also provided a welcome cushion to its cash coffers.

Swinand rates the stock a buy, keeping him among a small group of analysts betting on a turnaround at the struggling chain.

Penney shares rose 2% on the news.

The company blamed the sales decline partly on the construction of its home departments in 505 stores and on its earlier pricing and marketing strategies, which it said are being changed under returning Chief Executive Mike Ullman. Penney said it issued the preliminary results because of the Goldman Sachs loan. Final results will be released on May 16.

http://blogs.marketwatch.com/behindthestorefront/2013/05/07/investors-breathe-a-sigh-of-relief-over-j-c-penney/


6 posted on 05/07/2013 4:33:29 PM PDT by caww
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To: South40
hmmmmm, how do i say this... GOOD!!!
7 posted on 05/07/2013 4:36:57 PM PDT by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: South40

I guess Ellen and that “love fest” with the gays didn’t work out to well.....


8 posted on 05/07/2013 4:38:21 PM PDT by martinidon
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To: South40

Penney’s used to be a family-store. They decided to cater to homosexuals. They didn’t get their business anyway, and now they have lost ours. How much did the CEO who caused this fiasco walk out with laughing all the way to the bank?


9 posted on 05/07/2013 4:40:32 PM PDT by Wisconsinlady (If babies had guns, they wouldn't be aborted)
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To: BobL
Agreeing they have to win over the customer base again....but in my store they are certainly willing to give Penney's that chance as customers are increasingly coming back as this past weekend evidenced...and once they realize things are returning to normal.

Some will never come back...those who don't are unwilling to wait until Ullman can get out the contracts with the likes of Degenerous etc.

The catalog is no more as flyer's once more are being sent out...and coupons as well.

It's only been three weeks or so since uulman took over.....he's accomplished a great deal in short order already.

St. John's Bay is back into the stores as of this week...and others will also be returning that were good sellers.

I think it's only fair to give him some time to turn this ship around...and I believe he will from all I'm seeing at floor level.

Employee moral was horrible under Johnson....now excited to have things begin to be normal again...slowly but hopefully surely.

10 posted on 05/07/2013 4:41:04 PM PDT by caww
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To: martinidon

Give Ullman time...Ellen will be history once they determine how to get out of the contract.


11 posted on 05/07/2013 4:41:56 PM PDT by caww
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To: Wisconsinlady

I work there...it still will be a family store once Ullman can tackle all he has to tackle to turn it around...it took Johnson 18 months to hurt this company...and bring in his liberal mindset...it’s going to take a little time to root that out.

I’m certain Ellen has a contract, which they will determine how to get out of that hopefully soon.

BTW HE didn’t just walk out...he was fired! And he knew from the get go he couldn’t loose even if fired.

Not uncommon these CEO’s walk out ok...but Johnson lost a whole heap in stocks etc.


12 posted on 05/07/2013 4:45:40 PM PDT by caww
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To: South40

And now that Soros is into JC Penney, I’m ALL the way out.


13 posted on 05/07/2013 4:47:18 PM PDT by Colonel_Flagg (Blather. Reince. Repeat.)
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To: South40

The gay community is not the 90% they said it was?

Oh well. bye bye JC Penny.


14 posted on 05/07/2013 4:49:38 PM PDT by NoLibZone (None here can be puzzled by why Jews walked into the cars so quietly- we are walking up the planks.)
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To: caww
Employee moral was horrible under Johnson....now excited to have things begin to be normal again...slowly but hopefully surely.

I went into my local Pennys looking for Easy Spirit shoes, which I had always bought there. I looked around the department and didn't see the brand anywhere. A young woman asked if she could help me and I told her what I was looking for. "Oh", she said, "we don't carry that brand." I said, "you used to." She sighed and turned around and under her breath I heard her mutter, yeah, we used to.

She seemed so disspirited.

15 posted on 05/07/2013 4:51:55 PM PDT by LibertarianLiz
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To: South40

“Business sucks but we are still FABULOUS”!

LLS


16 posted on 05/07/2013 4:52:33 PM PDT by LibLieSlayer (FROM MY COLD, DEAD HANDS!)
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To: caww

I work there...it still will be a family store once Ullman can tackle all he has to tackle to turn it around...

I hope you are right that it turns around. My husband only buys his underwear (Stafford) from Penney’s. (Sorta like rainman)


17 posted on 05/07/2013 4:53:12 PM PDT by Wisconsinlady (If babies had guns, they wouldn't be aborted)
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To: Gator113
It may be down but it is not out!

All these things Johnson changed will be attended to in time....Ullman’s been just three weeks at the Helm and accomplished what Johnson could not...he's shored up the business...established contacts necessary with those that matter to do that...is handling vendors etc...and has done much in this short time already....and yesterday the entire company just completed their first inventory count since Christmas...which Johnson would not do.

Employees are working like mad to satay up with these changes now...and this on skeleton crews for the most part....that too will change once theirs a complete "picture" of just where the plans will go. All construction stops once the home areas are completed. I am hopeful things will turn around and we won't be seeing the likes of Ellen and others like her...if that continues, which I understand won't be, but if it does...I'll be looking elsewhere for work.

18 posted on 05/07/2013 4:53:32 PM PDT by caww
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To: caww

The key word is SLOWLY. Once they’re out of cash, it’s game over. They do need to take some POSITIVE STEPS now...or nothing matters.


19 posted on 05/07/2013 4:56:55 PM PDT by BobL (Look up "CSCOPE" if you want to see something really scary)
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To: LibertarianLiz
It really has been awful for employees....which Johnson let go of thousands. So we're really trying to keep up with how quickly things have to change now with few employees to handle the tasks...and remember we just went thru this ‘four different’ times with Johnson!

So yes, it's been very hard on employees...but give it some time...as I said this week St. John's Bay is back in our store in full...and others will follow that were once popular to the base customers.

It's going to take time...but I am confident the Penny's we all knew will again be back...perhaps with a face lift which nobody can argue it didn't need, but the items hopefully will once again satisfy those who have shopped there.

20 posted on 05/07/2013 4:59:11 PM PDT by caww
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To: Colonel_Flagg

Are you also out of all the other companies he’s invested in?


21 posted on 05/07/2013 5:00:19 PM PDT by caww
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To: South40

Glad he’s gone, and hope the damage can be repaired. Finally went back after a year, and found the softest, prettiest V-neck tees. I believe they are called “slub tees” and come in every color of the rainbow. $6.99!!


22 posted on 05/07/2013 5:05:39 PM PDT by EnquiringMind
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To: BobL

Too true. I was never out of their home store, and always left with something, but they dropped all the brands I used to buy, and the store is nearly empty now and has been for months. Latterly I have been getting cards for 10 or 20% off, but there is nothing to buy. Only saw 2 salespersons in the whole store when I was last in, which was fine as there were only about two customers in the store, aside from myself, and we were all disgusted with the empty shelves and odd items for sale, which looked like the picked over leftovers from previous glory days. Saw one gal tearing her coupon in half, and dropping it in the trash. Pity, it used to be a favorite haunt.


23 posted on 05/07/2013 5:07:29 PM PDT by kiltie65
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To: BobL
They have and are...as you might know the first thing was to stop the cash flow river Johnson was milking.....Ullman was on that and reestablishing contact with venders....additionally he had to work with Macy's on the Martha Stuart (bimbo) deal...Macy's Ceo knows Ullman and they worked out a deal.

There were so many holes needing plugged and so far he's done exceptionally well. Keep in mind not only did Johnson leave but he lost three of his own people in the past seven months and took three more with him when he left. So Ullman also has had to get people back to work with him....

It's been a circus and it's not done yet...but we employees are very excited and hopeful...you cannot imagine the relief felt when Johnson was fired....it was like a shoe was taken off every-bodies neck!

24 posted on 05/07/2013 5:07:48 PM PDT by caww
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To: caww

Wow...I’m glad for you. I’ve tried get the point across to JCP that they have to STEP UP, not just idle-away, if they want to survive. They lost most of their wealth under Johnson - they cannot build it back up very quickly, unless they take some chances, as in Chick-a-Fill. Just trying to go back to where they were simply CANNOT work, and I can promise you that.

If you see that, get your resume in the mail, immediately.


25 posted on 05/07/2013 5:13:03 PM PDT by BobL (Look up "CSCOPE" if you want to see something really scary)
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To: kiltie65
Well I don't know what store you're in...but ours is still finishing up the home area...which will in time have a return of items once enjoyed by customers.....

Johnson wanted “Designer” shops...that is not Penney's nor would it ever be....although they've always had several shops within the store right along. But there will be no more tearing out depts’s to make room for the expansions Johnson was doing..and that rapidly.

Our store was the busiest I'd seen it in months ...we were all on the run trying to keep up with the customers...I was bushed but very happy to see the customers returning in droves as they did over this weekend.

It will be a favorite place again...it's been just three or four weeks...give it some time.

26 posted on 05/07/2013 5:13:53 PM PDT by caww
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To: caww

Those I know of, yes. I try not to knowingly spend money that goes in the pocket of a known enemy of everything conservatives stand for.

What do you do?


27 posted on 05/07/2013 5:14:05 PM PDT by Colonel_Flagg (Blather. Reince. Repeat.)
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To: South40

Waaahaaahaaa!!!


28 posted on 05/07/2013 5:17:22 PM PDT by republicanbred (...and when I die I'll be republican dead.)
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To: Wisconsinlady
<.....My husband only buys his underwear (Stafford) from Penney’s. (Sorta like rainman)....>

Ha! So does my brother...I think alot of men love the store..they usually come in and get what they want...they like consistency....not shopping like woman do.

Yes, I hope I'm right as well...I got to say when I took this job after taking an early retirement I wasn't prepared for Johnson coming in and all this mess...it's taken a toll on many employees...some left because they could no longer handle the anger of the customers over these changes...it's been truly awful...I've never seen so many angry customers so often, for such a long period! They were truly nasty!

It's been my pleasure to inform them Johnson's gone and things will be normal in time...

29 posted on 05/07/2013 5:20:02 PM PDT by caww
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To: South40

Is JC Penney still celebrating sodomy? I haven’t bought—and in fact I have AVOIDED the stores in my area since finding out about their embrace of perversion.


30 posted on 05/07/2013 5:28:19 PM PDT by SoFloFreeper
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To: BobL
They know what needs to be done and quickly...the banks are working well with Ullman and they've used some store properties to back up loans needed to stabilize the company....they own a good deal of the real-estate so good they have had this.

They do need to bring back the top sellers Johnson got rid of....keep in mind his target audience was young people and high spenders...neither of which was Penney's..but something else he was attempting to create.

Johnson offended the base customers greatly..and the employees....as well as those working with him...he was on a one man mission and nothing was going to sway him from that.

Ullman had already been bringing in new “shops” but at a pace that is the standard for customers to adjust to.

If you look at the stats for Penney's when the 0 financial crisis hit...Penny's was one of the very few retailers who remained stable..not good nor bad but stable. The man who brought Penny's thru that is at the helm now...so if anybody can do this I think he can stabilize the ship.

31 posted on 05/07/2013 5:29:36 PM PDT by caww
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To: caww

Well, then I will wish you success and good fortune.


32 posted on 05/07/2013 5:33:57 PM PDT by Gator113 ( ~just keep livin~ I drink good wine, listen to good music and dream good dreams.)
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To: SoFloFreeper

I looked (quickly) through this year’s Mother’s Day flyer and didn’t see anything suggestive of homosexuality. Going to wait and check the Father’s Day one before drawing any conclusions.


33 posted on 05/07/2013 5:35:30 PM PDT by steve86 (Acerbic by Nature, not NurtureĀ™)
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To: BobL

I think you meant Chick-fil-A. ;>)


34 posted on 05/07/2013 5:35:51 PM PDT by Gator113 ( ~just keep livin~ I drink good wine, listen to good music and dream good dreams.)
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To: Gator113

“I think you meant Chick-fil-A.”

Call it what you will, it just flows much better my way.


35 posted on 05/07/2013 5:39:48 PM PDT by BobL (Look up "CSCOPE" if you want to see something really scary)
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To: South40

Good. It was bad enough to push Ellen Degenerus on us, then Soro’s buys a chuck of stock. I use to shop at Penney’s, no more.


36 posted on 05/07/2013 5:40:48 PM PDT by Linda Frances (Woe to those who call evil good and good evil, who put darkness for light and light for darkness)
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To: South40

They were so anxious to enter a bold new scheme...throw the LGBT crap in the public’s faces, like Obama does, and hopefully, the world rushes in to say how wonderfully fashionable you are. Only, they forgot that JCP customers are, and mostly have been, conservative and family-oriented by traditional means.


37 posted on 05/07/2013 5:43:20 PM PDT by Shery (in APO Land)
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To: South40

My wife dragged me to the local JCP to look at some housewares.

I found the exact same item (vendor, brand, box and item, same sku even) at the local Walmart for 30% less. If they sell the same cr@p as Wally world, why bother to go to either place?


38 posted on 05/07/2013 5:43:32 PM PDT by ASOC (What are you doing now that Mexico has become OUR Chechnya?)
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To: Colonel_Flagg

If it’s truly that significant to you you might want to check where your utilities come from....don’t shop Costco or buy Papermate, UniBall or Sharpies...and certainly don’t pay for anything with an America Express Card...and when you buy tool stay away from Vise-Grip and Unibit.

He’s invested in all these and far more.


39 posted on 05/07/2013 5:48:23 PM PDT by caww
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To: Shery

<....they forgot that JCP customers are, and mostly have been, conservative and family-oriented by traditional means....>

Johnson didn’t forget...he didn’t want them...they were no longer his target customers at all. He wanted to remake Penney’s to something it is not...it was doomed to fail from the get go for he broke every rule known of the standards in operating a retail store and it’s environment, let alone insilting the customers who had been loyal for years to Penney’s.

It got so bad I really began believing it was dileberate to bring Penny’s down!


40 posted on 05/07/2013 5:53:09 PM PDT by caww
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To: South40

JC Penny’s was lost quite awhile ago. They made their bed, chose who to stand with all on their own....so enjoy yourselves but I won’t be a part of what you have become.


41 posted on 05/07/2013 6:03:21 PM PDT by Ramonne
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To: South40
Jinkies! Sounds like they'd better rush right out and hire some more queers to hock their crappy, overpriced garbage...
42 posted on 05/07/2013 6:06:48 PM PDT by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: Gator113

Thank you Gator....I hope but i am not a fool wither...it will take a lot more yet to turn this around...but at least it’s much better going into work there...I had been looking for other work...It didn’t feel like a good fit anymore.


43 posted on 05/07/2013 6:30:57 PM PDT by caww
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To: caww
Bring back the Stafford Super Shirt, those were the best dress shirts that I have ever owned........and after talking to the sales clerks, I'm not alone in this view.

Outrageous and completely unnecessary discontinuation.

44 posted on 05/07/2013 6:32:25 PM PDT by scfirewall
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To: scfirewall

Well Johnson didn’t care what the customer wanted...he was on another track for Penney’s altogether.

I remember after one year the “message” was... the customer has had enough time to adjust and we’re moving on from here.
What an insult!

What he didn’t seem to accept was it was the customer who was moving on! We saw it week after week as the traffic declined more and more...and even then he still wouldn’t pay attention.


45 posted on 05/07/2013 6:36:20 PM PDT by caww
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To: scfirewall

BTW It is known in the high fashion industry that Penney’s shirts, and clothes for men, are the best quality if one doesn’t buy high end designer labels.


46 posted on 05/07/2013 6:38:38 PM PDT by caww
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To: Colonel_Flagg
Haven't set foot in a JC Penneys store since they went gay. Anything they sell I can buy somewhere else.

I wish the same for Starbucks with the hard-core attitude they don't care what we think about who they support. Hubby pointed out this morning that many people in America only make $7.00 an hour (before taxes) when people spend almost that much for just one latte's or cappuccino and they do it often.

47 posted on 05/07/2013 7:03:47 PM PDT by MamaDearest
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To: Caipirabob

Jinkies! Sounds like they’d better rush right out and hire some more queers to hock their crappy, overpriced garbage...

Wow! What a broad sweep you make. Good you are not going to be shopping there. If they can get things turned around, as it should be - I will shop there. If you are concerned about who is pro-gay / who donates to gay causes-and who is not, you need to check- you will not be shopping any where.

Why in the world do you assume any one and every one who works at JCPs is queer?


48 posted on 05/07/2013 8:40:06 PM PDT by handmade
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To: South40

Gay C. Penney. Let them rely on the perverts whose butts they kissed.


49 posted on 05/08/2013 3:50:29 AM PDT by ViLaLuz (2 Chronicles 7:14)
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To: South40
I got a $10 coupon for them in my newspaper.

I could use a pair of pants and was in their neighborhood, so I wandered in last Saturday morning. It's been awhile, but I didn't recognize the place.

The store was devoid of shoppers. None. I was it. And this was a Saturday - not an off time.

Stranger still was the fact that 1/2 the store was empty. Some was due to a remodeling that was going on. But at least 1/2 of the available floor space had little to no merchandise on it. I'm no expert, but I'd guess that it's hard to make money if you have nothing to sell.

And my pants? Kohl's had the same thing, cheaper, without the coupon.

Barring a 180 flip in the next few months, JCP is on its way out. Too bad, I really liked shopping there, at one time.

50 posted on 05/08/2013 8:15:49 AM PDT by wbill
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