How To Save J.C. Penney: Shut Hundreds Of Stores, Say Business Professors


J.C. Penney has been a popular shopping mall back to the time, however, currently J.C. Penney appear problems to face.J.C. Penney hired Ron Johnson as J.C. Penney CEO in June 2011, and Johnson started a new strategy of Pricing method for J.C. Penney such as “Every Day” Price and ” Best Price”. However, those methods do not help company sale profit increase. Although J.C. Penney stock has been risen, total sale of 2012 decrease a lot after Ron Johnson took over CEO position. In Fact, Johnson gave wrong strategy for J.C. Penney.

Therefore, J.C. Penney fired CEO Ron Johnson and solved problems itself. J.C. Penney have been operated for more than 100 years. In the article, Bruce Clark, a professor of marketing stated that some J.C. Penney are old, and it had not opened more new stores in the last five years. J.C Penney located from suburb to downtown, it has been experienced peak or trough. Nowadays, there are more competitors than old modernization, such as Macy’s, Sears and Nordstrom; these stores are mostly located in downtown and mid-range areas. J.C. Penney has financial problems because they did not do well in operation management. To have a good operation management, it need a great critical thinking.

In addition, in the end of article, it mentioned that the main focus of J.C. Penney for now is to open stores in higher end malls. I think that it has this idea, this main focus because it can attract more higher-income customers to shop J.C. Penney so that it can earn more sales. Also, if J.C. Penney are going to put stores in higher end malls, they have to have great critical decision to save stores. Since it will be closing 700 stores out of 1100 J.C. Penney stores, it need to offer great design of goods and services, managing quality and supply chain management. In Chapter 1, we discuss in-class of ten critical decisions, and I think these three decision areas are more concern for J.C. Penney. Since they have a bad strategy of pricing and cash drain before, it need these decisions to operate well J.C. Penney.

If J.C. Penney really decide closing stores, I believe that it is a tough decision since it is a large company with 1100 stores and open more than 100 years, and it would cause a lot of effects, such as it will make handles all closing stores problems, a lot of employee and employers losing job opportunities, destructing of  operating covenants  and paying penalty. Therefore, if J.C. Penney do not close that 700 stores and have new strategy development, I think that J.C. Penney can be back on track, for example, like the Chapter 2 strategy, the elements of operation management strategy are low-cost products, high-value offerings and efficient, flexible operations adaptable to consumers etc.  Therefore, I think that it should not close stores, and I believe that each of J.C Penney stores still have value so they should not give up, and they just need a great strategy and critical decisions of management.