J.C. Penney gets cheaper
J.C. Penney (JCP) shares dropped 10% in trading Thursday after the department store chain posted another sharp decline in same-store sales. The Plano, Texas, company said sales in stores open at least a year fell 6.7% from a year ago in February, compared with the company’s projected low-single-digit decline. “Home categories and the southeast region continue to experience the softest results,” the company said. J.C. Penney said it expects sales this month won’t be quite as bad, with a same-store decline in the low single digits.
But the weak numbers are the latest disappointment at Penney, which has cooled off after the company’s strong growth in 2005 and 2006 caused the stock to double. In January, the company said same-store sales for December fell 7.5%. With the stock off almost 50% from year-ago levels, activist investor Carl Icahn - who recently said he thought retail stocks looked cheap - has started buying, The Wall Street Journal reported last month. If Icahn was buying J.C. Penney at $48 a share, he’ll surely love it at $42.
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Can only comment on the one JCP store in our area. Overall, the customer service is nill or minus. No enthusiasm shown by employees and barely any customer assistance. If policy has been to cut employees, they may be working against JCP. With dollars so limited for items they sell, a pleasant shopping experience by the customer will only lead to the return of these same customers since the prices are fairly reasonable and the overall items offered are attractive. A progressive customer service program would especially be benefical to JCP with the new line of clothing they are now offering. Ralph Lauren - that usually catches the public’s eye.