We will not do business like we did in the past. I think real estate as a separate division can support the company’s growth.Īs I review all of this and write about the future, I am worried that I do not yet see a clear enough vision emerging for the company. Frankly, I do not see the need for creating a real estate REIT. In addition, plans are to split the company into two publicly traded entities one being a real-estate investment trust with unencumbered real property of $1.4 billion, and the other being the merchant entity. Some 70% of JCPenney’s lenders have agreed to support a restructuring proposal that would reduce a major portion of indebtedness. It is a risk every retailer is taking by opening stores. Plus, there are concerns about a second wave of coronavirus cases, which would force stores to close again in some areas. I am not sure that all stores will open by then and have time to rebuild business. But, the proposed restructuring requires that an acceptable business plan be presented to first-lien lenders on July 14. That may slow management’s ability to open stores. And, like every retailer, stores will only be able to reopen based on the guidelines and precautions of each individual region. All these competitors are fighting for market share, and I see a real challenge here.ĥ. Competition is brutal right now, and JCPenney must win back customers that are shopping elsewhere (Macy’s, TJ Maxx, Marshalls, Kohl’s, Burlington, Ross Stores, Backstage, Target, Walmart and Amazon to mention just a few).
SOUNDAR JC PENNY FULL
She has an impressive background and was in charge of merchandising of apparel and accessories at Target. But, it will take more time to assess the full impact of her efforts on JCPenney.Ĥ. Soltau hired Michelle Wlazlo just last year as GMM from Target Corp. This is the reason why the stores had no uniform image for so long. He or she must be a strong leader in fashion, merchandise coordination and teamwork all at once. It is a flaw, since the GMM often makes decisions that set the long-term vision for the business.
For the last 15 years or more, JCPenney has not had a general merchandise manager. The general merchandise manager position was only recently filled. The deadline for these actions is January 2022.ģ. I suspect it would also mean consolidation of some foreign buying offices. The reduction of stores requires not only the dismissal of associates connected with the closed stores but also dismissal of support associates in buying, supply chain and administration. (The company currently has 846 stores.)Ģ. That will make it a total of 242 that will be closed or almost 30% of the total. Management has announced that its reorganization plan will close an additional 222 stores.
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