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Oppenheimer can't get knocked off its bullish stance on J.C. Penney (JCP), saying the increased...

  • Monday, December 24, 2012, 8:20 AM ET
    Oppenheimer can't get knocked off its bullish stance on J.C. Penney (JCP), saying the increased promotional stance the retailer is taking will pay dividends this holiday season and down the road in 2013. Despite the optimism, the general view from retail analysts is that even if J.C. Penney stops the bleeding, it's still going to be hard to recapture the customers it lost to Macy's (M) and Kohl's (KSS).
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    But that is the central point in this strategy. The customers lost to the "promotional/fake price/fashion commodity peddlers" are the ones that were aging almost as fast as they were bleeding the company dry of profits. The old JC Penney felt almost like an upscale Kmart... with inventory. It was a promotionally driven imitator. Any fashion business that relies on price alone to drive it's business is in a spiral dive to oblivion. The price needs to be viewed as a reasonable value. But the creativity and uniqueness of the product is what builds a loyal following.

    Costco is an example of the price myth. I love Costco. But I don't shop there for the low price. I shop there for the massive selection and huge array of products that are usually very fresh and up to date. Because they have "price credibility", I don't even think about the price very much...I just trust that it's competitive.

    This is a reinvention. It might have been better to have completely renamed the operation instead of hedging bets with "JCP".

    I'm with Oppenheimer and Morningstar.
    24 Dec 2012, 09:49 AM Reply Like
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