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 ...
“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.”
Gosh, sounds like you could be describing Microsoft’s doomed Windows 8 strategy.
“Their stupid idea of not having sales, has pushed them over the cliff.”
Indeed. I rarely shopped there, but when I did, it was because I was enticed with a whole bunch of additive discounts via sales and coupons. I didn’t really notice those had stopped arriving, but eventually noticed I was no longer shopping there. At this point, I would have no idea in the world if I was getting good value there without all the discounts. I assume the value wouldn’t be as good. That’s probably the same assumption most of the rest of their former customers have made. Clearly total morons have been in charge of JC Penny for quite some time.
JC Penny is probably doomed at this point, because now that so many people have lost the habit of shopping there, even restarting all the sales of the past probably won’t help very much.
I’m sticking with them as long as they sell slacks in my size.....no other brand fits to perfection. If they go under, I’ll have to pay to have slacks altered from now on.
So please, everyone, go buy something from JCP :)
Retailers need to remember basic math: Throwing away a sizeable portion of your customer base to go chasing after the roughly 5% of the population who are LGBT is really, really stupid.
Go to bed with the faggots, die of AIDS.
JC Penney’s was once a good store.
They’ll be lucky to get a reach-around.
I remember being astounded as a boy when someone mentioned going into a Sears store! I thought Sears was mail order only, we regularly ordered from the catalog by mail order but I had never before heard of a Sears store that you could walk into. Of course we called it “Sears and Roebuck” in those days.
At least we have the untarnished memories of what they used to be. I worked there several decades ago right after college, and the culture at that time was nothing but wholesome.
Homos destroy everything they touch.
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