Description of the business
JC Penney Company, Inc. is a holding company whose primary operating subsidiary is JCPenney Corporation, Inc. JCP was incorporated in Delaware in 1924, and JC Penny Company, Inc. was incorporated in Delaware in 2002, when the holding company structure was carried out. The new holding company assumed the name JC Penney Company, Inc. (Company). The holding company has no independent assets or operations, and no direct subsidiaries other than JCP. Common stock of the Company is publicly traded under the symbol “JCP” on the New York Stock Exchange. The Company is a guarantor regarding the payment of principal and interest on JCP’s outstanding debt securities[1].
James Cash Penney founded JCP Company in 1902, from then till now it has grown to become a major retailer. It has currently functioning 1,062 department stores in 49 states.
The company has a different way of ending its fiscal year. It ends its Fiscal year on Saturdays that are closest to January 31st. The company releases reports according to the fiscal years rather than the normal years. The fiscal year’s period of the recent past years are as follows;
Fiscal year 2014ended on January 31, 2015
Fiscal year 2013 ended on February 1, 2014
Fiscal year 2012 ended on February 2, 2013
This variation to the dates of fiscal years brings variation to the number of weeks in a year. Fiscal years 2014 and 2013 consisted of 52 weeks and fiscal year 2012 consisted of 53 weeks.
JCP Company operates business which includes selling of merchandise and services to consumers using the medium of department stores and their website at jcpenney.com. Through this it utilizes the fully optimized applications for desktop computers, mobiles and tablet devices. JCP Company’s department stores and website serve the same type of customers and provide virtually the same mix of merchandise, and the department stores are towards the e-commerce side. They refund and return the goods purchase by the customers on the website. Fulfillment of online customer purchases is done by direct shipment to the customer from their distribution facilities and stores or even from the suppliers' warehouses and by the customers cans even come and pick up from the stores.
Most JCPenney stores are positioned in distant shopping malls. Before 1966, most of its stores were situated in inner city areas. As shopping malls became more famous during the latter half of the 20th century, JCPenney followed the trend by rearranging and establishing stores to anchor the malls. In recent years, the line has remained constant to follow consumer flow, echoing the retailing trend of opening some independent stores, including several challengers. Certain stores are located in power cores. The company has been operating through e-commerce since 1998. It has rationalized its catalog and distribution while undergoing renovation improvements at store level[2].
JCPenney makes sales of the following through Sephora;
1) Family apparel
2) Footwear
3) Accessories
4) Fines Jewelry
5) Fashion Jewelry
6) Beauty Products
In addition, their department stores provide customers with services like
1) Styling salon,
2) Optical,
3) Portrait photography and
4) Custom decorating.
Major product / service lines
JCPenneydeals in various businesses. JCPenneymainly deals in women’s apparel, men’s apparel and accessories, home products, women’s accessories (including Sephora), children’s apparel, family footwear, fine and stylish jewelry and services.
The major contributors to the revenue of JCPenneyfor the year 2014 were the products that lie in women’s apparel and men’s apparel and accessories. Out of the total revenues generated in the year 2014 women’s apparel and men’s apparel and accessories were responsible for a huge chunk of the percentage. Home products contributed 12% to the revenues followed by women’s accessories (including Sephora). Clothing line for children accounted for a 10% of the total of revenues. 8% of the revenues are generated by the sales of family footwear, fine jewelry line contributes 7% and services rendered by JC Penney bring in 5% of the revenues.J.C. Penney Case Solution
A major chunk in the revenues of JC Penney was brought in by women’s apparel and men’s apparel and accessories. Both of them collectively accounted for 46% of the revenues for JC Penneyfor the year 2014. If we consider both the product lines separately women’s apparel brought 24% to the company, whereas men’s apparel and accessories was responsible for 22%. These two product line mainly contributed to the revenues generating almost the half of the revenues for JC Penney. These percentages are of the combined sales made on the department stores and through the website as well....................................
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