Corporate Information | JCPenney Newsroom (2024)

FAQs

Is JCP doing better? ›

Despite its sales and profit declines, the company remains in the black. Moreover, the retailer's sales declines are lessening, GlobalData Managing Director Neil Saunders said by email. “The final quarter was the best of the year for JCPenney, which is a small crumb of comfort,” he said.

Guided by the Golden Rule, JCPenney employs more than 50,000 associates worldwide and has served customers for over 120 years, playing a vital role in the communities it serves. JCPenney was founded in Kemmerer, Wyoming, in 1902 by James Cash Penney.

JCPenney has picked a new slogan, one that it hopes will resonate with shoppers. It is: "When it fits, you feel it." This comes on the heels of other lackluster slogans such as "It's All Inside," "Every Day Matters," "New look.

But the company's mid-market appeal was tested by growing competition during the 1980s and 1990s. Discount stores including Walmart and Target spread, stealing away JCPenney's budget-conscious customers. The company was hit hard by the Great Recession in 2008.

Two years after a difficult bankruptcy, JCPenney has found solid footing while other chains died during the pandemic. Sometimes the relevance of a retailer is decided by people who don't shop there.

Such has been the case for J.C. Penney, which has been on the brink of death for approximately a decade and recently re-emerged from bankruptcy in late 2020. Three years later, it revealed an ambitious $1 billion comeback plan, promising store remodels, upgraded technology, and improved operations by 2025.

JCPenney has struggled with financial issues for years, including declining sales and mounting debt. These financial issues made it difficult for the company to invest in its stores and compete with other retailers.

In late 2020, Simon Property Group (SPG) and Brookfield Asset Management (BAM)—two of the nation's largest property owners—purchased the company for $800 million. At the time of the bankruptcy, JCPenney held $4 billion in debt.

James Cash Penney's original store was called Golden Rule, because he believed people should be treated as he would like to be treated himself. Later, when he opened more stores and incorporated, the name was changed to JCPenney.

With the exception of certain private brand window coverings, JCPenney does not manufacture any of the products that we sell. For our private brand merchandise, we source from suppliers that operate in or import from over 30 countries.

When did JCPenney peak? ›

JCPenney reached its peak number of stores in 1973, with 2,053 stores, 300 of which were full-line establishments. However, the company was hard hit by the 1974 recession with its stock price declining by two-thirds. In 1977, J. C.

The retail powerhouse, led by CEO Jamie Salter and president and CMO Nick Woodhouse, acquired Forever 21 in 2020 after the fashion firm went into bankruptcy in 2019. It acquired JCPenney via its venture group SPARC, which includes mall owners Simon Property Group and Brookfield Properties.

The plaintiff, Maria Carranza, contends that JC Penny is engaging in a scheme to fabricate false “original” (or “reference”) prices before offering products for sale at a supposed “discount.” Carranza claims that JC Penny falsely advertises its products on its e-commerce website by listing a high reference price and ...

Overall, JCPenney's weaknesses are mainly attributed to its inability to adapt to changing consumer preferences and the increasing dominance of e-commerce, along with financial challenges and a lack of effective marketing strategies.

Ideally, the retail chain would have also known in advance that customers found Johnson's new three-tiered “simple pricing” scheme—which didn't include common shopping terms like “Clearance” and “Sale”—to be enormously confusing. A continued sales slump forced Johnson to realize the error of his ways.

According to a financial filing with the SEC, JCPenney reported a significant decline in net sales and total revenue during the third quarter of fiscal 2023. Net sales dropped by 10.7% to $1.5 billion, while total revenue fell by 11.1% to $1.6 billion compared to the same period in 2022.

J.C. Penney's retail arm was acquired through the bankruptcy court by Brookfield Asset Management and Simon Property Group. J.C. Penney emerged from bankruptcy in December 2020 with new owners, less debt and about 200 fewer stores.

After filing for Chapter 11 bankruptcy protection in May 2020, in September 2020, Brookfield Asset Management and Simon Property Group agreed to purchase the company for around $800 million in cash and debt. The deal was approved by the U.S. bankruptcy court for the Southern District of Texas two months later.