J.C. Penney shares slide as UBS sees worse holiday sales (Ellen Christmas advertising flops?)

Reuters ^ | 1/11/13 | Phil Wahba

[jimbo123]

J.C. Penney Co Inc (JCP.N) slid as much as 8 percent on Friday after UBS published a research note saying holiday quarter sales have likely been worse than expected and questioned the retailer's ability to roll out its new shops on schedule. -snip- UBS analyst Michael Binetti lowered his forecast for Penney's fiscal fourth quarter, which is still underway and includes the holiday period, and expects same-store sales to decline 28 percent, from an earlier projection of a 20 percent decline.

[Average Al]

I'm a bit surprised by this. We have one of their new boutique stores near us and it is great! It makes Kohl's look like a shabby mess in comparison and their everyday prices kick butt for quality clothing too. I was very pleasantly surprised!I hadn't been in a Penney's in years. Our larger Penney's has been remodeled in the same format. Both were rather busy compared to Macy's, Dillard's or even Belk’s. I think their biggest mistake is getting the message out as to what they are doing.

[Proud2BeRight]

We used to shop at a local Penny’s, particularly for Christmas gifts, for decades. Ever since they started catering to perversion, we have not spent a dime with them.

[JPG]

With catalogs featuring two ‘dads’ and two ‘moms’, what could possibly go wrong with that stellar business model? Their coffers must be filled to overflowing.

[Mastador1]

Despite what seems to be the reasoning here, most people I have spoken to, including many seniors, the most common reason for not shopping at Penney’s is the lack of sales and coupons. People love sales and coupons because real or imagined they believe they are saving money.

[DManA]

If Penney’s was serious about the long term they’d go on a raid of the Target headquarters. Those guys seem to know what they are doing.

[laweeks]

Am I missing sarcasm or were you serious? She is supposed to look larger than those “men” because they are supposed to be Christmas elves.

Anything to put down men, whom she virulently hates. Good chance to show them as teeny tiny.

She disgusts me anytime I see her.

[Gator113]

Seems that J.C. Penney has poked itself in the butt and will no doubt be on its knees before long.

[Spktyr]

That appears to be because the men are supposed to be Santa’s Elves and therefore tiny.

As for JCP, they have carried nothing I want since the 90s, long before the current CEO and marketing. They decided to ‘go gay’ in an attempt to rescue a failed business model via gaywashing. Problem is, gay people wouldn’t be seen dead in Penney’s merchandise. Basically they have alienated just about everyone and they are now discovering what happens after that.

That said, I suspect we’re going to be hearing about a LOT of retail chains not making their Christmas sales goals because of the Obaminated economy anyway. JCP’s sales problems are/were just exacerbated by their stupidity.

[old and tired]

I'm only passingly familiar with the gay angle and I've never seen any JCP ads with Ellen in them. However, I do think Penney's leadership is a mess. A couple of weeks before Christmas my wife had to make a very rare trip to the mall. Because she was going there anyway, my daughter in law asked her to pick up dressy sweaters for our 5 and 7 year old grandsons. Something they could wear to a viewing that evening and to Christmas Eve Mass.

Anyway, my wife went to the JCP boys' department, didn't see the sweaters and so she asked the saleswoman. The woman looked stricken and said, "No, we didn't get any boys' sweaters in. I don't know why. We didn't have them last year either." My wife said she thought the lady was going to cry.

My wife ended up picking up the sweaters at Target on her way home. If a JCP in Pennsylvania can't even stock dressy little boys' sweaters before Christmas, who exactly is their desired demographic?

[Zuben Elgenubi]

I read the linked Reuters article and failed to notice any reference to the gay themes and backlash to Ellen G, as opposed to about 20 comments relating to such.

I think the store and the reporting medium have their heads in the sand.

[Buckeye McFrog]

the most common reason for not shopping at Penney’s is the lack of sales and coupons.

Got that right. Kohl's has taken the hint and begun cranking out coupons with a vengeance. Hence you can barely get in their parking lot most days.

[3D-JOY]

Ellen, Mother’s Day catalog cover showing 2 Mommys and Father’s Day showing 2 Daddys on their respective covers is still most talked about as a reason.

Quality changes are beginning to be general conversation too. Long term suppliers have been replaced with new suppliers with more cheaply made goods.

Check out the famous towel, “The BIG One”. Much thinner and more coarse weave now.

I was never a great shopper there, but now not at all.

[rocketmag]

What kind of idiots would change their whole market strategy to attract 3% of the population. I used to shop there quite often. Not anymore

[wolfpat]

I will say this about Ellen: She is the only celebrity who got funnier AFTER she “came out”. Rosie O’Donnell just got mean. Wanda Sykes got boring. I never thought Ellen was funny before, but she can get an occasional chuckle out of me now.

[pacpam]

I only shop sales. Color me gone.

[MaxMax]

Who watches that slut. She invites women on the show just so she can oogle them on camara.
Flaming lesbians are counter productive to a healthy society. And no lib-ladies, it's not cute.

[henkster]

I agree with you; Penny’s homophilia is only part of the story here. In addition to substandard quality, their selection is limited. Last time I went through one of their stores (about a year ago) I didn’t see anything I liked. So I didn’t buy anything. By the way, this was in one of Indianpolis’ busiest malls. The Penny’s store was dead as a mausoleum.

[Graybeard58]

Her bench type seat is higher too and notice the clenched left fist. Yeah, I get the point and it isn’t just because the men are supposed to be elves.

Nothing in advert pics like that is unintentional.

[NEMDF]

I think they are supposed to be “elves”... so they would be smaller than normal people.

[Coyote Choir]

You can bet the Businessinsider site will be touting the “new and improved” JCP right up to its disappearance from the malls. And its demise will be blamed widely on... customers. Not the CEO and his crew, and not those who hired him to break the company and make something else of it. I’m unhappy as an old ex-customer who outfitted our family for many years in this store and who then got the clear message I was not the customer they had in mind anymore.