| Type | Public |
|---|---|
| Traded as | NYSE: JCP S&P 500 Component |
| Industry | Retail |
| Founded | Kemmerer, Wyoming, U.S. (1902) |
| Founder(s) | James Cash Penney William Henry McManus |
| Headquarters | Plano, Texas, U.S. |
| Number of locations | 1,106 (2010)[1] |
| Area served | United States |
| Key people | Ron Johnson CEO |
| Products | Clothing Footwear Furniture Jewelry Beauty products Electronics Housewares |
| Revenue | US$ 17.759 billion (FY 2010)[1] |
| Operating income | US$ 832 million (FY 2010)[1] |
| Net income | US$ 389 million (FY 2010)[1] |
| Total assets | US$ 13.042 billion (FY 2010)[1] |
| Total equity | US$ 5.460 billion (FY 2010)[1] |
| Employees | 156,000 (January 2010)[1] |
| Website | JCPenney.com (Retail) JCPenney.net (Corporate) |
J. C. Penney Company, Inc. (NYSE: JCP) is a chain of American mid-range department stores based in Plano, Texas, a suburb north of Dallas. The company operates 1,107 department stores in all 50 U.S. states and Puerto Rico.[2] JCPenney also operates catalog sales merchant offices nationwide in many small markets.
Most JCPenney stores are located in suburban shopping malls. Before the mid-1950s, most stores were located in downtown areas. As shopping malls became more popular in the latter half of the 20th century, JCPenney followed the trend by relocating its stores to anchor the malls. In more recent years, the chain has continued to follow consumer traffic, echoing the retailing trend of opening some standalone stores, including some next door to competitors. Certain stores are located in power centers and can be considered big-box stores. The company has been an Internet retailer since 1998. It has streamlined its catalog and distribution while undergoing renovation improvements at store level.
In addition to selling conventional merchandise, JCPenney stores often house several leased departments such as Sephora, Restaurants, optical, portrait studios and jewelry & watch repair. JCPenney also features discount outlet stores. Some of these were converted from regular JCPenney stores.
Contents |
James Cash Penney began his career in retail management when he opened The Golden Rule store, a partnership with Guy Johnson and Thomas Callahan, on April 14, 1902 in Kemmerer, Wyoming. He participated in the creation of two more stores, and when Callahan and Johnson dissolved their partnership in 1907 he purchased full interest in all three locations.
In 1909 Penney moved his company headquarters to Salt Lake City, Utah to be closer to banks and railroads. By 1912, Penney had 34 stores in the Rocky Mountain States. In 1913, all stores were consolidated under the J.C. Penney banner. The so-called "mother store", in Kemmerer, opened -as the chain's second location- in 1904. It still operates, as of 2011, albeit with hours shorter than many of its other store locations.
In 1913,[3] the company was incorporated under the new name, J. C. Penney Company, with William Henry McManus as a co-founder. In 1914,[3] the headquarters was moved to New York City to simplify the buying, financing, and transportation of goods. Around this time, Bert J. Niver joined the company as a junior partner. By 1917, the company operated 175 stores in 22 states in the United States.
J. C. Penney acquired The Crescent Corset Company in 1920, the company's first wholly owned subsidiary. In 1922, the company's oldest active private brand, Big Mac work clothes, was launched. The company opened its 500th store in 1924 in Hamilton, Missouri, James Cash Penney's hometown. By the opening of the 1,000th store in 1928, clean business had reached $190,000,000.
In 1940, Sam Walton began working at a J. C. Penney in Des Moines, Iowa. Walton later went on to found future retailer Wal-Mart in 1962. By 1941, J.C. Penney operated 1,600 stores in all 48 states.
In 1956, J. C. Penney started national advertising with a series of advertisements in Life magazine. J. C. Penney credit cards were issued and accepted at its stores for the first time in 1959.
In 1962, J. C. Penney entered discount merchandising with the acquisition of General Merchandise Company which gave them The Treasury stores. These discount operations proved unsuccessful and were shuttered in 1981. In 1963, J. C. Penney issued its first catalog. The company operated in-store catalog desks in eight states. The catalogs were distributed by the Milwaukee Catalog distribution center.
The company dedicated its first full-line, shopping center department store in 1961. This store was located at Black Horse Pike Center, in Audubon, New Jersey. The second full line shopping center store was dedicated, at King of Prussia Plaza, in King of Prussia, Pennsylvania in late 1962. Those stores broadened the lines of merchandise and services that a typical J. C. Penney carried to include appliances, sporting goods, garden merchandise, restaurants, beauty salons, portrait studios, auto parts and auto centers.
J. C. Penney also established stores in America's newest states during the 1960s. The company opened stores in Anchorage and Fairbanks, Alaska in 1962. The Penney Building in Anchorage was five stories tall, almost 100,000 square feet (9,300 m2) in size, and partially collapsed and was damaged beyond repair during the 1964 Alaska earthquake. Precast concrete wall panels (see left photo; one story tall and about as wide apiece) fell to the streets below during the shaking, which resulted in deaths[4] as well as near-misses.[5] The store was torn down to its foundation and was rebuilt as a three-story building,[4] with the footprint slightly more than doubled to extend south to Sixth Avenue. The loss of parking which resulted led the company to construct Anchorage's first public parking garage directly across Sixth Avenue, which opened in 1968.[6] The store, along with the Reeve Building directly across D Street, was integrated with the design of the 5th Avenue Mall when it was built in 1987.
The Fairbanks store was located in Alaska's first urban renewal district. Several blocks of downtown Fairbanks, which previously consisted mostly of log cabins, including a former red-light district, were cleared, and a block of Sixth Avenue was vacated. In its place were constructed large office and commercial buildings, with the Penney store and a state office and courthouse building the largest. Safeway and Woolworth's also built stores in this area at around the same time. The Fairbanks store, particularly its second floor, served as a refuge during another natural disaster, the 1967 flood. The company closed this store in 2000; the building is currently occupied by a furniture retailer.
In 1966, J. C. Penney finished off the country's 50 states with the opening of its Honolulu, Hawaii store, at Ala Moana Center (all Hawaii stores would be shuttered in 2003). The Penney location at Plaza Las Américas mall in San Juan, Puerto Rico, which opened in 1968, featured three levels and 261,500 square feet (24,290 m2). It was the largest J. C. Penney store in the world until a larger location, encompassing 300,000 square feet (28,000 m2), was dedicated at Greater Chicago's Woodfield Mall in 1971. The Woodfield Mall store served as the largest in the chain until a replacement store opened at Plaza Las Américas in 1998, which is 350,000 square feet (33,000 m2) in size.
In 1969, the company acquired Thrift Drug, a chain of drugstores headquartered in Pittsburgh, Pennsylvania. 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.
On February 12, 1971, James Cash Penney died at the age of 95. Out of respect for James Cash's death, the company's stores were closed for half a day. Beginning in the summer of 1971, the company adopted its current "JCPenney" logo, but it took nearly a decade for this to be rolled out chain-wide. In 1977, J. C. Penney sold its stores in Italy to La Rinascente and also removed its Supermarkets Interstate leased departments. In 1979, the Visa card began to be accepted in J. C. Penney stores. MasterCard was accepted the following year.
In 1978, the J. C. Penney Historic District in Kemmerer, Wyoming, was designated a U.S. National Historic Landmark.
In 1984, J. C. Penney acquired the First National Bank of Harrington, Delaware and renamed it JCPenney National Bank. With the bank the company became able to issue its own MasterCard and Visa cards. The company also began accepting American Express cards. Also that year, Thrift Drug began co-locating stores with Weis Markets, and acquired many former Pantry Pride properties. In April 1987, the company announced that it was moving its headquarters to Dallas, Texas.[7] In 1983, J. C. Penney phased out its electronics and auto departments, and also sold its auto repair shops. After several years of development, the JCPenney Television Shopping Channel appeared on cable systems beginning in 1989.
In 1990, the company broke ground on the company's new corporate headquarters in Plano, Texas. It was completed in 1992. When Sears closed its catalog business in 1993, J. C. Penney became the largest catalog retailer in the United States. In 1996, the company expanded its drug store business with the acquisition of Fay's Drug and Kerr Drug. These acquisitions momentum climaxed with acquisition of the Eckerd chain in November. Fay's, Kerr, and Eckerd merged into J. C. Penney's drug store subsidiary Thrift Drug. Fay's, most Kerr, and Thrift drug stores were re-branded Eckerd in 1997. (Kerr Drug stores in The Carolinas remain branded as such.)[8]
In 1998, JCPenney launched its third channel for shopping convenience. Its Internet store has grown into one of the largest apparel and home furnishings retail sites on the Internet. In early 1999, JCPenney went from a middle-scale chain to an up-scale chain. In early 2001, JCPenney closed 44 under-performing stores. On April 14, 2002, JCPenney celebrated 100 years as a retailer. In 2003, the company opened three off-the-mall stores in strip centers. These stores were located in Texas, Minnesota, and Indiana.
The new one-level, 94,000 sq ft (8,700 m2) format stores focus on convenience with wider aisles and centralized checkouts.[9] In 2004, the company added 14 more stores and exited the drug store division after 35 years, with the sale of its Eckerd division. In 2005, JCPenney's e-commerce storefront exceeded the one-billion dollar revenue mark for the first time.
In 2007, JCPenney launched the Ambrielle lingerie label, and it became their largest private brand launched in JCPenney history.[10] J. C. Penney also re-introduced cosmetics with the opening of Sephora "stores-within-a-store" inside some J. C. Penney locations. Beginning in 2007 the store slogan changed from "It's All Inside" to "Every Day Matters"; the new slogan and associated ad campaign was launched in television commercials during the 79th Academy Awards in late February 2007.
After J. C. Penney sold off Eckerd in 2004, the locations that continued to operate as Eckerd (some locations in the Southern U.S. were sold to CVS Corporation) still had JCPenney Catalog Centers inside the stores (which was a carryover from locations that were once Thrift Drug) and also continued to accept JCPenney credit cards. After Rite Aid finalized its acquisition of Eckerd in 2007, the Catalog Centers inside the soon-to-be-converted Eckerd stores permanently closed, although as a result of the acquisition, Rite Aid now accepts JCPenney credit cards, even at Rite Aid locations that existed before the takeover of Eckerd.
In November 2007, the company launched a new public website, JCPenneyBrands.com, which covers the company's private and exclusive brands, and their branding strategy, with a preview of an upcoming product line. In February 2008, the company launched the "American Living" brand, as developed by Ralph Lauren, across several product lines, including Men's, Women's, and Children's Apparel and Shoes, Intimate Apparel, and Home. The launch, which was accompanied by an ad campaign during the 2008 Academy Awards, was the company's largest private brand launch.[11] American Living for infant apparel was launched in July 2008. In the summer of 2008, J. C. Penney also added a new brand to its home collection, "Linden Street." The Linden Street brand features a contemporary lifestyle collection of furniture, domestics, and home decor. Linden Street is sold exclusively in JCPenney stores and through their website. Other new exclusive brands for junior's and young men's were launched in the summer of 2008, including Le Tigre, Decree, and Fabulosity, a junior line of clothing by Kimora Lee Simmons.
In June 2008, an ad called "Speed Dressing" emerged ending with the JCPenney logo and slogan "Every Day Matters". The ad won a prize at the Cannes Lions International Advertising Festival. The ad was criticized for seeming to promote teen sex. JCPenney denied that the ad was theirs and their advertising agency Saatchi & Saatchi reported that it had been created by a third party vendor. It was entered in the competition by Epoch Films, who declined to comment.[12][13] Marketing expert John Tantillo advised that the company distance itself from the commercial and also shed the publicity it engendered.[14]
In July 2009, new additions were made to the JCPenney young men's department, including an expansion of their private brand Decree (previously exclusively a juniors clothing line) and the introduction of more skate/surf-oriented clothing, including Rusty, RS by Ryan Sheckler, and 3rd Rail. In August 2009, Albert Gonzalez's defense lawyer announced that JCPenney was a victim of the computer hacker, although JCPenney stated that no customers' credit card information had been stolen.[15] In September 2010, JCPenney had joined Facebook to help promote their "Care, Share, Win" campaign. Since 1999, JCPenney has donated $100 million to after school care. Fans of JCPenney on Facebook can help decide which school will receive the next million dollars.
In 2009, JCPenney reached an agreement with Seattle's Best Coffee to feature full-service cafes within leased departments inside JCPenney stores across the country. Currently, Seattle's Best Coffee are still expanding cafe locations within JCPenney locations across the country.
On January 24, 2011, JCPenney announced it will exit the catalog business and close all 19 of its catalog outlet stores.[16] An additional seven stores, two call center facilities, and one customer decorating facility will also be closed.[16]
In June 2011, JCPenney announced that Ron Johnson will become the company's new CEO.[17]
In October 2011, JCPenney sold the 15 remaining catalog outlet stores to SB Capital Group. These stores will remain open then transition to JC's 5 Star Outlets. [18]
On December 7, 2011, JCPenney announced the acquisition of 16.6 percent of Martha Stewart Living Omnimedia stock. JCPenney plans to put "mini-Martha Stewart shops" in many of its stores in 2013, as well as strting a web site together. [19]
On February 12, 2011, The New York Times exposed the use of link schemes, i.e., spamdexing, successfully to promote the JCPenney web site in Google search results for many months, especially during the holiday season. Doug Pierce, an expert in online search, described the optimization as "the most ambitious attempt to game Google's search results that he has ever seen." Ultimately, Google took retaliatory action and drastically reduced the visibility of JCPenney in searches. Although the retailer denied any involvement, it fired its search engine consulting firm, SearchDex.[20]