December 24, 2012- According to Durban Capital’s chief analyst, Steve Kernkraut, JC Penney (JCP) stock has very little going for it at the present time. The analyst made his remark last Thursday.
The problem for the giant American retailer is, according to Kernkraut , that they’ve made far too many mistakes recently. The result of those mistakes is that their stores, even during this busy holiday shopping period, are close to empty.
However, Kernkraut was quick to point out that the retailer’s top management, specifically Chief Executive Officer (CEO) Ron Johnson, has finally become aware of the problem and is taking steps to correct what has been done wrong.
One step taken recently has been to offer promotions and price reductions to customers, something other retailers have been doing regularly, but something JC Penney had refused to do for far too long.
The drop in customer traffic and sales has been severe. JC Penney reported sales-to-date in 2012 of thirteen billion dollars. The store’s sales for the same period in 2011 were much higher. Last year, the number reached twenty billion dollars.
Perhaps the willingness to offer steep discounts will help JC Penney bring its customers back to its stores.