Preview

Jcp External Analysis

Good Essays
Open Document
Open Document
9202 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Jcp External Analysis
Growth
“Though stubbornly high unemployment and continued uncertainty over the prospects for job growth will continue to dampen the outlook for industry retail sales growth in 2012, the retail industry will still grow at a rate faster than many other industries. This year, retail industry sales will rise 3.4 percent to $2.53 trillion*, according to the National Retail Federation – slightly lower than the pace of 2011, in which sales grew 4.7 percent. Many economists estimate that real U.S. GDP will rise approximately 2.1 to 2.4 percent. Over the last 18 months, retailers have been on the forefront of the economic recovery – creating jobs, encouraging consumer spending, and investing in America,” said NRF President and CEO Matthew Shay. “Our 2012 forecast is a vote of confidence in the retail industry and our ability to succeed even in a challenging economy. Retailers have played a key role in driving growth, but to continue this momentum we need Washington to act on proposals that will spur job creation and unleash the power of the private sector.” [ (Global Labor Rights, 2001) ] The retail industry will always be very profitable because this industry is extremely high in demand. This statement reinforces the fact that the retail industry is and will always stay saturated due to the necessity of clothes. There will always be rivalry and profitability for the retail industry because there is not just competition in this region or nation; it is based on a global market. As always, competition is important in long-term success because competition is what keeps industries adapting. With a necessity industry such as the retail industry, there will always be competition. This makes it somewhat difficult for a company’s long term success. Taking into account all the competition, there are few retail companies that will outlast their competition in a long-term setting. The retail industry is a Business to Consumer industry because they provide the goods and services

You May Also Find These Documents Helpful

  • Best Essays

    Jcpenney vs Macy's

    • 5166 Words
    • 21 Pages

    The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic environment to offer higher-end, localized products that you cannot find anywhere else. Our team has come to realize through internal and external analyses that Macy’s has come up the stronger of the two models. They have created competitive advantage through strong relationships with suppliers, differentiating their new product lines, and localizing for consumer needs. Though every day low cost is a great idea and could be catchy with consumers, JCPenney has failed to convey their new objective correctly. They lost touch with the end consumer and will have to catch up in that sense to gain back some ground. It was interesting to analyze and evaluate the new differences between the two department store’s strategies, as well as establishing which has gained the competitive advantage.…

    • 5166 Words
    • 21 Pages
    Best Essays
  • Good Essays

    The economic crisis that started in 2007 affected the business of upscale department stores countrywide. Upscale department stores understand that the items they sell are considered discretionary items, so when there is an economic downturn, they are one of the first industries to be hit. When looking over the Nordstrom Annual Reports from the last few years, there are two things evident: this company has a lasting strategy and they work hard to continuously evolve this strategy. Their strategy includes constantly evaluating risks in the market such as economic conditions, competitive market forces, availability of merchandise, and growth. With an incredible sense to stay ahead of the trends, minimize turnover time, and serve their customers with an uncanny ability, they have easily become one of the top department stores in the country. Nordstrom’s core strength revolves around their customer-first attitude, customer loyalty and their aptitude for merchandising. “Going forward we want to be more than just customer focused. Instead, we’re working to become a truly customer-driven organization.”[1]…

    • 710 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Kohl's & Dillards'

    • 1730 Words
    • 7 Pages

    “An estimated two-thirds of the U.S. gross domestic product (GDP) comes from retail consumption. Therefore, store closings and openings are an indicator of how well the U.S. economy is recovering after the Great Recession in the late 2000's.”[1]…

    • 1730 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Macy's Business Plan

    • 4459 Words
    • 18 Pages

    Reaching its 150th birthday in 2008, Macy’s Inc. has emerged as an American household icon over the past few decades. Macy’s sells a range of merchandise, including men’s, women’s, and children’s apparel, accessories, cosmetics, home furnishings, and other consumer goods. Since its merger with Federated Department Stores in 1994 and May Department stores in 1995, Macy’s has been pursuing ways to be more creative and distinctive in meeting customer needs and in delivering exceptional values. In order to maintain its share of the department store market, Macy’s has been aggressively investing in a distinguished shopping experience with unique merchandise, exclusive fashion brands, online sites, and breakthrough marketing. However, the ‘Credit Crunch’ in 2007 and 2008 has led to a tremendous decline in consumer confidence, causing decreases in store sales and profits. Macy’s 2008 fourth quarter earnings showed a profit of $750 million. Demographics, consumer spending, and fashion trends drive demand in the department store industry. Macy’s has always faced tough competition in its geographical areas, including discounters, luxury stores, and mail order retailers. Macy's is distinct from warehouse stores in that it does not sell goods in bulk and operates at a higher price point.…

    • 4459 Words
    • 18 Pages
    Powerful Essays
  • Satisfactory Essays

    The general retail industry has greatly benefited from the liberalization of international trade. Europe and the United States comprise approximately 75% of the market of the general merchandise store sector. With the lowering of US tariffs and the ending of Europe’s Multi Fiber Agreement, these markets now benefit from the availability of low cost labor. Reducing labor costs lowers the product price allowing companies to offer lower priced goods while still maintaining a profit margin (Datamonitor, 2007).…

    • 620 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    One may be asking when did these changes begin, and why did they begin? That brings us to the history of the retail industry and how it has shaped how MNC’s communicate, trade, and conduct business.…

    • 1728 Words
    • 7 Pages
    Best Essays
  • Good Essays

    JCPenney's repositioning

    • 704 Words
    • 3 Pages

    J.C. Penney’s new strategy—which some deem visionary while others question its wisdom—challenges many of the assumptions behind the modus operandi of many fashion retailers. And whereas most media and analyst attention has been focused on jcpenney’s new pricing, another more fundamental aspect of J.C. Penney’s strategy has been largely overlooked. This issue is the retailer’s desire to be “a store for all Americans—rich and poor, young and old, rural and suburban.”[i] While this goal cannot be faulted for lack of ambition, it goes against the conventional wisdom that it is difficult to succeed by trying to be everything to everybody. In fact, many companies have failed because of their unwillingness to “give up” serving some customers in order to better fulfill the needs of others. The question then is: Will J.C. Penney be able to succeed where others have failed, or will it soon…

    • 704 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Macroeconomic Signals

    • 533 Words
    • 3 Pages

    Because consumer spending accounts for two thirds of the economy, and retail sales account for nearly half of total consumer spending, retails sales is a key indicator of the economy’s health. Since the retail sales data are extremely volatile from month to month, it would be more reliable to analyze the retail sales data in a 3 months to the previous 3 months analysis rather than month to month. Foremost, retail sales is a direct indicator that tracks the money value of goods sold within the retail trade by taking a sampling of entities involved in the business of selling end products to users. Retail sales also give a direct signal on the consumers’ appetite on spending on goods. That is, it reflects the strength of consumer spending as well as the degree of optimism that consumers are conveying for the state of the economy through their spending activity and savings. Further, retail sales provide a direct indicator for an economic slowdown or an economic…

    • 533 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Retail has played a major role in improving the productivity of the whole economy at large. The positive impact of organized retailing could be seen in USA, UK, and Mexico and also in China. Retail is the second largest industry in US. It is also one of the largest employment generators.…

    • 2621 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Cases of Bis

    • 7119 Words
    • 29 Pages

    It should come as no surprise to anyone who has ever tried to keep up with fashion trends, that change is driving the apparel industry today. But change is occurring more than in the design of clothes. The structure and nature of retailing and manufacturing are also shifting. Geographical boundaries are disappearing. Limitations are dissolving. Above all, consumers today look for versatility and value, and they, not the retailers or manufacturers, define what constitutes those qualities. For example, the move toward casual dress is an attempt to simplify increasingly complex lives. These shifting priorities mean consumers are less loyal to brands or to stores, but…

    • 7119 Words
    • 29 Pages
    Good Essays
  • Powerful Essays

    The India Retail Industry is the largest among all the industries, accounting for over 10 per cent of the country's GDP and around 8 per cent of the employment. The Retail Industry in India has come forth as one of the most dynamic and fast paced industries with several players entering the market. But all of them have not yet tasted success because of the heavy initial investments that are required to break even with other companies and compete with them. The India Retail Industry is gradually inching its way towards becoming the next boom industry.…

    • 4592 Words
    • 19 Pages
    Powerful Essays
  • Good Essays

    Is JC Penney’s Makeover the Future of Retailing? Kim Girard, Harvard Business Week, March 2012…

    • 719 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Retail growth in the coming five years is expected to be stronger than GDP growth, driven by changing lifestyles and by strong income growth, which in turn will be supported by favorable demographic patterns and the extent to which organized retailers succeed in reaching lower down the income scale to reach potential consumers towards the bottom of the consumer pyramid. Growing consumer credit will also help in boosting consumer demand.…

    • 6704 Words
    • 24 Pages
    Better Essays
  • Satisfactory Essays

    Chinese Passenger Shopper Research 2012 Garry Stasiulevicuis Counter Intelligence Retail Ltd Singapore Show Monday 14th May 2012 TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012 COUNTER INTELLIGENCE RETAIL UK based dedicated TR agency… • Category development and market intelligence • 150,000 interviews in last 18 months • 200,000 shopper observaQons • Intelligence from more than 40 naQonaliQes TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012 RESEARCH FINDINGS TAKEN FROM CIR STUDIES & DATA BASE Global sample of >40,000 Chinese Passengers TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012 2011/12 RESEARCH TOPICS • AXtudes and behaviours during the airport experience • PercepQons towards the key categories • MoQvaQons, triggers and barriers to purchase • Cross category relaQonships • Key category metrics including penetraQon and conversion • Key needs and requirements of the traveller • In bound and outbound travellers • Comparisons to the Global traveller TFWA Chinese Passenger Shopper Research 2012 Copyright © Counter Intelligence Retail 2012 AN ECONOMIC POWERHOUSE…

    • 1071 Words
    • 65 Pages
    Satisfactory Essays
  • Powerful Essays

    Crm at Retail Sector

    • 3120 Words
    • 13 Pages

    Retail sector is one of India's fastest growing sectors with a 5% compounded annual growth rate. Retail is India’s largest industry. It accounts for over 10% of the India's GDP and around 8% of the employment. Driven by changing lifestyles, strong income growth and favorable demographic patterns, Indian retail is expected to grow 25% annually. India's huge middle class base and its untapped retail industry are key attractions for global retail giants planning to enter newer markets. It is expected that retail in India could be worth US$ 175-200 billion by 2016.…

    • 3120 Words
    • 13 Pages
    Powerful Essays

Related Topics