Jc Penney Company Overview

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JC Penney Company Overview
JC Penney Co. Incorporated was founded in 1902 in Kemmerer, Wyoming by James Cash Penney and William Henry McManus. Today JC Penney offers a range of family apparel, jewelry, shoes, accessories, and home furnishing products through a chain of department stores and their company website. JC Penney, headquartered in Plano, TX, operates in the United States and Puerto Rico, with a total of 1,108 stores. JC Penney also offers its products through a catalog channel. Each channel serves the same type of customers and provides generally the same merchandise mix. JC Penney’s business is conducted through a single segment, but revenues are reported by product category. In addition to their product categories, the stores offer a salon, optical, portrait photography, and custom decorating services. JC Penney receives merchandise from over 3,500 suppliers, both domestic and foreign. The company operates buying and quality assurance inspection offices in 19 countries. JC Penney faces competition from a variety of retailers. JC Penney operates stores within very competitive markets, usually within close proximity to competitors. 53 percent of JC Penney stores have a Kohl’s store within a five mile radius. Department stores, such as Dillard’s, Kohl’s and Macy’s provide direct competition for JC Penney. In addition to department stores, discount stores, such as Target and Wal-Mart are competing with JC Penney. These stores offer lower prices and are attractive to consumers in a struggling economy. JC Penney’s target market is women whose household income is between $35,000 and $80,000. A company executive said that they are targeting women with, “too little time, too little money, and two little kids.” JC Penney is focusing on “lifestyle merchandising,” which targets specific types of women. According to JC Penney, the different life style preferences are as follows:

Conservative – Seeks simple, practical and dependable pieces for their wardrobe and home; rather than being influenced by trends, is focused on pieces that provide both function and quality.
Traditional – Looks for classic, timeless merchandise with natural fibers and ease of care; it’s important for them to be comfortable while looking smart Modern – Adventurous, open to change and interested in being current and trend-right; constantly integrate new looks into their wardrobe and have a fashionable and open approach to dressing and decorating.

Trendy – Fashion-conscious and wants to be noticed; desires the latest, must-have styles and are willing to push the envelope in every aspect of their wardrobe and decorating. In 2007, JC Penney launched a new brand positioning, “Every Day Matters.” A company executive said the JC Penney customers want their lives to be more exciting and meaningful, and that the company will strive to make JC Penney a place for encouragement and inspiration. The main goal is to show the customers that what matters to them, matters to JC Penney. This will be done by enhancing customer service, a new marketing campaign, a newly updated store environment, and training of every company associate to achieve the new initiatives.

JC Penney offers a range of family apparel, jewelry, shoes, accessories and home furnishings products. The company’s key products include: Women's apparel
Children's apparel
Men's apparel
Beauty and fragrance products
Fine jewelry
JC Penney, like most department stores, has a wide variety of products. JC Penney’s merchandise assortment includes private, exclusive, and national brands. Private and exclusive brands account for about 50 percent of annual sales. There is a large assortment of products within each product category. For example, JC Penney’s website offers 25 different brands of men’s jeans. The wide assortment is evident in other departments of the store as well. To appeal to it’s main target...
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