Investors believed low-margin items like appliances were squeezing profits, and that discount and self-service home-center stores were doing a better job than JCPenney in the hardware business. In 1954 Penney created the James C. Penney Foundation (its predecessor, the J.C. Penney Foundation, went under during the Depression) to continue his philanthropy, and in 1957 he served as a charter member of the Distributive Education Clubs of America, helped create the Junior Achievement Clubs, and endowed a chair at Westminster College. The so-called "mother store", in Kemmerer, opened as the chain's second location in 1904. The company also broke ground for its new corporate headquarters in Plano, Texas, just north of Dallas; winnowed its stores down to 1,328 by closing underperforming outlets; and moved away from some of its private labels, focusing instead on major brand names like Haggar, Healthtex, Jockey, Levi Strauss & Company, Maidenform, Ocean Pacific, Oshkosh, Reebok, Van Heusen, and Warner's. The first store, which opened April 14, 1902, was located in Kemmerer, Wyoming. Further, James E. Oesterreicher was named president and Gill retired after 39 years with the company. Here are further demographic highlights of the leadership team: The JCPenney executive team is 33% female and 67% male. [9][10] Departments inside JCPenney stores include Mens, Womens, Boys, Girls, Baby, Bedding, Home, Fine Jewelry, Shoes, Lingerie, The Salon by InStyle, JCPenney Beauty, as well as leased departments such as Seattle's Best Coffee, US Vision optical centers, and Lifetouch portrait studios. [27][28] Then in November 1996 they acquired the Eckerd chain. Tucker Carlson. He relocated to Colorado at the advice of a doctor, hoping that a better climate would improve his health. The company lowered its earnings forecast for the year to 13 cents per share at best, and said it could lose as much as 7 cents. Materials and merchandise were scarce, yet the company increased its sales to $500 million in 1945. These discount operations proved unsuccessful and were shuttered in 1981. )[29], On December 9, 1998, The New York Times reported JCPenney would acquire controlling interest of Lojas Renner for a little over $33 million, which increased the company's maneuvering ability with their already existing units in Chile, Mexico and Puerto Rico. On May 22, J. C. Penney announced the resignation of their CEO, Marvin Ellison. Dylan Hollingsworth/Bloomberg/Getty Images. Oct 26, 2021. [49][50] Prices would also not end in 9 or 7 and would instead use whole figures to price items. [104] On January 1, 2021, Soltau was replaced by Simon Property's chief investment officer, Stanley Shashoua. In 1929 the company was listed on the New York Stock Exchange. Retail sales fell from 1990's nearly $16.4 billion to $16.2 billion, but income and per share earnings nosedived (from $577 million to $80 million and from $4.33 to .39 respectively). [51], In April 2012, nearly 13% home office staff in Dallas were laid off and a call centre in Pittsburgh was closed down. Three top executives, including the chief financial officer Bill Wafford, chief merchant. "Penney . Customers liked them because of controlled quality and cheaper prices than brand names; Penney liked them because he could control the price and make a higher profit margin. Annual sales reach $14.8 billion. During its tenure, JCPenney opened two flagship stores: in 1995 on the upper ground level of Lippo Supermal (now Supermal Karawaci), and in 1996 on the upper ground and first level of Mal Taman Anggrek. JCPenney was different from many of its competitors with its late entry into the catalog mail-order business. The store, along with the entire mall, closed by the end of 2007. The ouster of Fox's top . Web. The company opens a trial store in Santiago, Chile. JCPenney store, as seen in May 2007, reflects the old Penney's signage. Unfortunately, Fridays filing wasnt entirely unexpected. Marketing expert John Tantillo advised that the company distance itself from the commercial and also shed the publicity it engendered.[126]. The move was considered controversial then as no other high-end designer up to that point in time had licensed their designs to a mid-price retailer. The company issued its first JCPenney card and instituted other changes as a result of the study, including the introduction of major appliances, home electronics, furniture, and sporting goods. [114] On July 31, 2020, it was announced that 21 stores, including the "Mother Store" in Kemmerer, Wyoming, would be auctioned off as part of the proceedings. Returned as CEO in 2013 after J.C. Penney suffered a tumultuous two years under replacement Ron Johnson. Annual. JCPenney created the Treasury discount stores from the General Merchandise discount operation. [122], In June 2008, an ad called "Speed Dressing" emerged ending with the J. C. Penney logo and slogan "Every Day Matters". Fay's, most Kerr, and Thrift drug stores were re-branded Eckerd in 1997. In 1922, the company's oldest active private brand, Big Mac work clothes, was launched. This list features past and present top J.C. Penney managers, including both current and retired J.C. Penney executives and alumni. [34] In 2003, the company opened three stores in strip centers in Texas, Minnesota and Indiana. At the same time, William Batten, a vice-president, conducted a study in 1957; the results indicated the company should adapt to changing consumer spending habits, especially by beginning to sell on credit instead of for cash only. The company's first order of business was to expand the fashion programs in men's, women's and children's departments, and the company divided its stores into two categories, metropolitan (based in regional shopping centers) and geographic (based in smaller communities). the locations that continued to operate as Eckerd, Cannes Lions International Advertising Festival, J. C. Penney-Chicago Store (Tucson, Arizona), J. C. Penney Company Building (Shoshone, Idaho), J. C. Penney Co. - Hired from fabric and crafts seller Jo-Ann Stores, she confronted continued falling sales and financial losses. Listen to this article 2 min. The Penney catalog makes its official debut. As a fifth distribution center was added in 1979, in Reno, Nevada, the catalog service went nationwide. 2006: JCPenney develops a partnership with Sephora to open full cosmetic boutiques within its larger department stores. JCPenney has 60,000 employees, of which 24 are in a leadership position. After several ups and downs in Longmont, Colorado, Penney started working for the Golden Rule Mercantile Company, a dry goods retailer founded by T. M. Callahan. With the acquisition of the bank, the company became able to issue its own Mastercard and Visa Inc. cards. In 1956, J. C. Penney started national advertising with a series of advertisements in Life magazine. May 15, 2020: JCPenney files for Chapter 11 bankruptcy protection. With this deal, Sephora will remain affiliated with, and under control of, the Simon and Brookfield retail portfolio, therefore superseding and annulling previous agreements for Sephora to leave JCPenney in favor of Kohls. On the heels of these triumphs came a two-for-one stock split in March 1993; a new advertising campaign reflecting the company's invigorated stance (JCPenney--Doing It Right); year-end retail sales just shy of $19 billion (up 5.4 percent); and income of $940 million (up 21 percent) due in part to stronger catalog sales of $3.5 billion (an 11 percent increase). On December 30, 2020, it was announced that Jill Soltau would step down as CEO of JCPenney, effective December 31, 2020. The company entices its 3,600 corporate employees with a better quality of life environment as a benefit for the relocation. [citation needed] The company also sold its six Mexico stores to Grupo Carso, which rebranded five of the stores as Dorian's and the other one as Sears Mexico. The stores are reconfigured into separate shops. In 2013, Soros Fund Management sold over 19 million J. C. Penney shares after only owning them for a few months. During World War II, the company sold a record number of war bonds through its stores. The department store retailer announced that Marc Rosen, a 25-year retail industry veteran who most recently served as executive vice president and president of Levi Strauss Americas at Levi Strauss & Co., will join the company effective Nov. 1. JCPenney locations that are listed on the National Register of Historic Places (NRHP): This article is about the department store chain. By June 17, J. C. Penney reopened approximately 827 stores; most of the 154 scheduled for permanent closure in 2020 were among those reopened, with final closing sales in progress. [46], On December 7, 2011, J. C. Penney purchased 16.6% of Martha Stewart Living Omnimedia stock. Apparel, home furnishings, and leisure lines would be emphasized, and auto service, hard line appliances, paint, hardware, lawn and garden merchandise, and fabrics were phased out. Tuttle, Brad. JCPenney announced today the appointment of Marc Rosen as chief executive officer, effective Nov. 1, 2021. JCPenney CEO Vanessa Castagna ranked No. In 1940, Sam Walton began working at a J. C. Penney in Des Moines, Iowa. It was entered in the competition by Epoch Films, who declined to comment. [85][86] She has also brought new talent and has cleaned out inventory. JCPenney's continued concentration on women--who accounted for 80 percent of apparel sales and on whose behalf each store now allocated up to 41 percent of its space--was paying off. [20] and its revenues reached $5billion (equivalent to $33.5billion in 2023) for the first time and catalog business made a profit for the first time. In 1914, Penney relocates the headquarters to New York City in order to be closer to the countrys main garment district. Its unsustainable debt load, compounded by COVID-19, just pushed it over the edge. J.C. Penney purchases the Milwaukee-based General Merchandise Company and enters the catalog mail order business. J. C. Penney credit cards were first issued in 1959. The company also planned to offer buyouts to roughly 6,000 employees. The company has had four different CEOs in the past 10 years. A Strategic Mistake that Haunts JC Penney. The company's five regional operations were narrowed to four in 1988 to make communication between merchandising divisions and stores easier. Stanley Shashoua, Simon's chief investment officer, has been appointed as executive chairman of the Board of Directors after serving as interim CEO of JCPenney since January. [82] In May, J. C. Penney reported an adjusted loss of $69million in the first quarter, even worse than Wall Street predicted, and lowered its projections for the year. Sales were down 28.4% from a year earlier and same store sales were down 32%. The company began accepting American Express cards as well as Visa, MasterCard, and JCPenney credit cards, and the bank was issuing its own Visas and MasterCards. [87] On December 26, the stock price of J. C. Penney (NYSE: JCP) fell below $1 per share. JCPenney CEO Jill Soltau speaks during an interview in Fort Worth, Texas, in 2019. NEW YORK, NY, UNITED STATES - 2018/07/08: JCPenney's Manhattan store, in the former Gimbels flagship, opened in 2009. [90] On March 26, J. C. Penney announced the hiring of Bill Wofford as chief financial officer. Doug Pierce, an expert in online search from Blue Fountain Media, described the optimization as "the most ambitious attempt to game Google's search results that he has ever seen". to address Penney's falling sales, where he was credited for revitalizing the home improvement chain. [40] That year, J. C. Penney reached an agreement with Seattle's Best Coffee to feature full-service cafes within leased departments inside J. C. Penney stores across the country. Another proprietary brand, the Original Arizona Jean Company (begun in 1990), soared in earnings to $400 million from the previous year's $90 million. In 1984, JCPenney acquired the First National Bank of Harrington, Delaware and renamed it J. C. Penney National Bank. [60] However, Ackman resigned from the board on August 12, and two new directors were subsequently appointed to the board, one of whom was former Macy's vice chairman Ronald Tysoe. [80][81], In 2018, J. C. Penney closed permanently at Plaza Palma Real in Humacao, Puerto Rico, after Hurricane Maria devastated the store in September 2017. Retail analysts who followed JCPenney called the company's decision difficult but necessary. Here are 7 other high-profile departures in recent years. - After sales fell 25%, Johnson conceded that his plan to abandon coupons and sales events was a mistake. By 1915 the company had 83 stores and the next year ventured east of the Mississippi River for the first time with stores in Wausau and Watertown, Wisconsin. Penney OpCo LLC, doing business as JCPenney and often abbreviated JCP, is an American department store chain that operates 667 stores across 49 U.S. states and Puerto Rico. [32][33], In early 2001, J. C. Penney closed 44 under-performing stores. The company has had four different CEOs in the past 10 years. On February 12, 1971, James Cash Penney died at the age of 95; the company's stores were closed the morning of his funeral on February 16. ", "JCPenney Unveils Linden Street Home Brand Bedding Collection", "Metropolitan Buys J.C. Penney Casualty Insurance", "X over it J. C. Penney's gas station and auto center", https://en.wikipedia.org/w/index.php?title=JCPenney&oldid=1150614618, St. John's Bay, casual clothing and shoes for men and women, including Big & Tall (men) and Plus (women), St. John's Bay Outdoor, men's outdoor apparel, Xersion, active and athletic clothing for men, women and children, Worthington, women's formal and casual clothing and shoes, a.n.a, young women's urban clothing and shoes, Ambrielle, women's sleepwear, intimates, and swim, Stafford, men's tailored/fitted clothing and shoes, J. Ferrar, men's full line of slim-fitting clothing,including Big & Tall, Collection by Michael Strahan, men's suits, ties, and cuff links, Mutual Weave, men's denim and casual outerwear, Marilyn Monroe, women's vintage collection. I write about department stores; past and present. Although she didn't mastermind the Dallas-based retailer's remarkable. [77] On March 17, J. C. Penney released a list of 138 locations that would close by the end of June. J. C. Penney finished the quarter with just $181million in cash, down from $363million a year ago. It is unclear whether she was fired or resigned. Those stores expanded the lines of merchandise and services that an average J. C. Penney carried to include appliances, sporting goods, tools, garden\lawn merchandise, restaurants, beauty salons, portrait studios, auto parts, and auto centers. [45], In October 2011, J. C. Penney sold the 15 remaining catalog outlet stores to SB Capital Group, the stores were then converted into JC's 5 Star Outlets. [92] Also on May 21, J. C. Penney announced a net sales decline of 5.6% and a net loss of $154million for its fiscal first quarter of 2019, which ended on May 5. JCPenney furniture outlet JCPenney outlet stores that only sold furniture & rugs. Linden Street is sold exclusively in J. C. Penney stores and through its website. 18. [78] By closing stores and distribution facilities, J. C. Penney would redirect resources to help expand its store-in-store Sephora boutiques, and add Nike and Adidas boutiques, similar to what Macy's has done with Finish Line, Lids and LensCrafters. Jake Lahut , Oma Seddiq, and Lauren Frias. 1913: The company, headquartered in Salt Lake City since 1909, is incorporated as the J.C. Penney Co. Its big mass merchant competitors, Montgomery Ward and Sears, continued in these lines. In the fall of 2011, Ron Johnson was appointed not just as CEO of JC Penney, but as the savior responsible for breathing new life into one of the dowdiest dinosaurs in American retail. [48] On February 1, J. C. Penney began a new pricing method, with "Every Day" prices on most days reflecting what used to be sale prices, "Monthly Value" for certain items every month in place of sales, and "Best Price" the first and third Fridays of each month, tied to paydays. Penney's health suffered while he was in the Midwest, and his doctor advised him to move to the cooler climate of Colorado. Age: Dec. at 95 (1875-1971) Joanne L Bober Ken C. Hicks Ken C. Hicks is the CEO of Foot Locker. He will assume the . The company discontinues its major appliances department after only 3 years. 1980: Inflation and high interest rates severely impact JCPenneys earnings. [89] On February 28, J. C. Penney announced its intent to close 27 stores in 2019, including 18 full-line department stores and nine home-and-furniture stores. 1912: With 34 stores, Penney annual sales reach $2 million. The ad was criticized for seeming to promote teen sex. 2014. Michael Kramer, JCPenney's chief operating officer, came in . By then, sales had grown to $10.8 billion, the women's fashion program was introduced in new markets, and a home furnishings line was added. Alternate J. C. Penney logo used on a few stores, used from 2011 until 2012. [53] In July 2012, the company announced that it was laying off 350 more workers at its headquarters. Mike Ullman, the retailer's former CEO, was announced as his replacement shortly afterwards. JCPenney's president, David Miller, added vice chairman and COO to his titles, and the company began focusing on four major merchandising groups by dividing them into separate business divisions: women's, men's, children's, and home and leisure. The former included Zonz, an Arizona offshoot for teens, and new additions to its menswear collection; the latter concerned a joint venture with the Coffee Group of Costa Mesa to install "JC Java" coffee bars in 800 of its stores, beginning with a handful in Orange Country, California in the fall of 1997. Thrift Drug, the 10th largest drugstore chain in the nation with 645 stores in 12 states, had sales of nearly $1.9 billion in '95 (a 20.2 percent increase) and plans for new outlets in North Carolina and New Jersey. In October 2021 the company opened 10 new shop-in-shop locations across the US, featuring a wide variety of brands, including indie and BIPOC brands, including flagship partner Thirteen Lune. JCPenney Home Stores stores that sold linens & home decor. JCPenney avoided bankruptcy after the company paid down paid $17 million in debt on Friday after missing two previous payments.JCPenney has an estimate $3.6 billion in debt. In 1990 Miller retired and vice chairman Gill took on the former's responsibilities as COO of JCPenney stores and catalog service. Stores were opened in Anchorage and Fairbanks, Alaska in 1962, followed by Honolulu, Hawaii in 1966, and Puerto Rico in 1968. In April 2022, JCPenney's ownersSimon and Brookfield offered $8.6 billion to purchase Kohl's. It also acquired Supermarkets Interstate, an Omaha-based food retailer which operated leased departments in J. C. Penney stores, The Treasury stores, and Thrift Drug stores. [99], On May 15, 2020, J. C. Penney filed for Chapter 11 bankruptcy and announced that there would be an additional 242 store closings, blaming the COVID-19 pandemic for its action. J. C. Penney planned to put "mini-Martha Stewart shops" in many of its stores in 2013, as well as create a website with Martha Stewart Living. In 1986 JCPenney acquired Units, a chain of stores selling contemporary knitwear and by the next year the company was well on its way to achieving the goals it set forth in 1982. St. James Press, 1997. Apr 25, 2023. JCPenney now operates 354 full-line department stores, 1,289 soft goods stores, 31 Treasury discount stores, and 255 drug stores.