Seeking Alpha

Dark clouds over J.C. Penney

  • J.C. Penney (JCP -3.5%) needs a good holiday season just to survive, according to The Deal.
  • The retailer is sitting on a treasury trove of real estate, but those assets are largely tied to backing its big loan from Goldman Sachs.
  • Sources inside the retail industry think a bankruptcy filing by JCP in Q1 when holiday cash is in hand might be the department store operator's most strategic move.
Comments (21)
  • dacama1
    , contributor
    Comments (217) | Send Message
     
    what holiday cash... who shops for Christmas at JC Penney?
    24 Sep 2013, 03:00 PM Reply Like
  • KnowsALot
    , contributor
    Comments (35) | Send Message
     
    I think I hear Frank singing... "And now, the end is near..."
    24 Sep 2013, 03:08 PM Reply Like
  • uayannas
    , contributor
    Comments (2) | Send Message
     
    The Deal comments sound a lot like widespread comments about Best Buy and its showcasing for Amazon. Think Ullman following right strategy and Xmas might prove a surprise, especially when the consumer is supposed to be cautious. .
    24 Sep 2013, 05:24 PM Reply Like
  • gmom3
    , contributor
    Comments (132) | Send Message
     
    Many customers have returned to our store in recent months. Many had no idea that our store had been remodeled so I would say they haven't been in the store for way past a year. Our store is in the midst of another major remodel with the addition of a Sephora, children's area, re do of Misses, adding walls to those areas, finishing off the finishes left undone when the last CEO left before this one. The company is investing quite a lot into our store and I would say there is faith in our continued growth in sales.

     

    Contrary to what the previous poster said, there really are a lot of customers purchasing even now for the holidays at JCPenney.
    I expect with the opening of Sephora and the completion of all the other construction at the same time, our store will be ready for the customers for the holiday season. It's not all doom and gloom at all stores. Just the ones that don't have the numbers, location and personnel to make things happen. I would think there must be other jcpenney stores out there surviving and having good reason that things have turned around for them.

     

    There must be a reason those stores are being kept hidden from these forums.
    24 Sep 2013, 03:16 PM Reply Like
  • powermojo
    , contributor
    Comments (37) | Send Message
     
    Don't tell them the truth just yet, keep the fear mongering going. I need the stock to go even lower for a better buy.
    24 Sep 2013, 04:36 PM Reply Like
  • CaladesiKid2
    , contributor
    Comments (271) | Send Message
     
    I cheer for you and all that strive to make JCP a wonderful turn-around story. I commend your spirit and your dedication. You make us proud to be capitalists - not giving up and waiting for our government hand-out.
    24 Sep 2013, 06:32 PM Reply Like
  • DMND_Nutty
    , contributor
    Comments (84) | Send Message
     
    gmom3 you see what I have been seeing. There is a turnaround but the people late to the bear raid are going to keep driving forward unknowing what they are doing. People are sheep. I am expecting to hear some positive statements in the coming months. Sorry people Soros isn't about to lose millions..
    24 Sep 2013, 03:25 PM Reply Like
  • josettep
    , contributor
    Comments (28) | Send Message
     
    Maybe we will be hearing about Soros getting out soon. He better not wait too long!!
    24 Sep 2013, 09:18 PM Reply Like
  • jewel6152
    , contributor
    Comments (7) | Send Message
     
    Every jcp in Texas cities I have lived in do very well, sales went way up when $ale$ coupons returned. Rockwall, Dallas, Mesquite, San Angelo, San Antonio.
    24 Sep 2013, 11:11 PM Reply Like
  • JR Fruto
    , contributor
    Comments (6) | Send Message
     
    I have no stake in the stock as of now but comparing the traffic from a year ago around Greensboro, Cary, Durham, and Raleigh stores in NC I've seen significant improvement. I live near Southpoint Mall Durham and the JC Penney I visit frequently was pretty much empty a year ago is now bustling with people.
    25 Sep 2013, 07:32 AM Reply Like
  • josettep
    , contributor
    Comments (28) | Send Message
     
    I guess the $10.12 stock price and all of Wall St. must be wrong!!!
    25 Sep 2013, 07:24 PM Reply Like
  • peloya
    , contributor
    Comments (17) | Send Message
     
    In the store I work, we are busy. Customers came back, but the problem , like was before, they came for the clearance mostly.
    Its normal to see a customer leave the store with a bag full of clothes, and when you look at the receipt, they spent no more then forty dollars

     

    I mentioned this before: they should have coupons, but, one coupon per household, and the coupon should be used once only.
    Many times we ended up ringing the same customer two, three sometimes four times in order for them to use all their coupons.
    That's totally insane, and plus: the store is operating with one employee per department.....Again, insane......
    24 Sep 2013, 05:51 PM Reply Like
  • mobyss
    , contributor
    Comments (1944) | Send Message
     
    Very good front line observations.

     

    If JCP does not have a very healthy Christmas season, I could see them liquidating early next year. At some point the endgame is obvious, and like Circuit City, Montgomery Wards or Mervyn's, some stores just don't stay in business forever.
    24 Sep 2013, 06:00 PM Reply Like
  • Mking30
    , contributor
    Comments (139) | Send Message
     
    Is this true? Isnt there enough room for Penneys too? Everybody's poor...
    24 Sep 2013, 06:17 PM Reply Like
  • CaladesiKid2
    , contributor
    Comments (271) | Send Message
     
    peloya, you are in the midst of a turn-around, that takes couponing to stimulate a positive customer experience. YOU are a vital part of that positive customer experience. Kudos! Make all the pessimists wrong. You have a wonderful opportunity to make a difference. This makes life so much more vibrant than those that wither as bureaucrats. Enjoy and thrive with the opportunity!
    24 Sep 2013, 06:36 PM Reply Like
  • evangelist
    , contributor
    Comments (4) | Send Message
     
    Jcp.com is healthy and performing quite well these days while stores need a little more catch up. The focus is on restoring old customer base before the profit margin. Product assortment is getting better (typically restore some profitable brands cut by Ron and fulfill more basic elements). The available funding constriant is a big concern - time is running out. The turnaround must get started NOW.
    24 Sep 2013, 09:56 PM Reply Like
  • josettep
    , contributor
    Comments (28) | Send Message
     
    Nothing lasts forever. Most people I talk to are done with Penney's! I would only shop there for clearance.
    24 Sep 2013, 09:03 PM Reply Like
  • bartpr
    , contributor
    Comments (2247) | Send Message
     
    penney has upgraded its merchandise in hopes of attracting new customers. it has abandoned its old fans in a gamble for new. if it had five years for this to happen maybe it could go. but the clock may be running out sooner. no one like to see old staff get the ax since it is not their doing and more going on unemployment, etc.
    24 Sep 2013, 09:10 PM Reply Like
  • countrydweller
    , contributor
    Comments (22) | Send Message
     
    The store I work in has been having consistent gains. We are busier even in home(finally). I feel optimistic about the Christmas season. I think we are going to be far busier than last year. This is typically a very slow time of year and it isn't nearly as slow as I remember last year.

     

    Clearance is a big seller but we have some pretty pricey stuff to move out.
    24 Sep 2013, 11:12 PM Reply Like
  • blackbeardz
    , contributor
    Comments (38) | Send Message
     
    the silence is deafening from top management at JCP. Rumors of new credit lines being negotiated are just that. http://bloom.bg/1exSK7j
    They don't need this long to decide whats left to hock, somethings not right here.
    look for yourself: http://jcp.is/1b4eTpX
    25 Sep 2013, 12:14 AM Reply Like
  • ldeaster
    , contributor
    Comments (85) | Send Message
     
    It is not the new stores that's one of JCP many problems, but go to the older stores and see what is going on there.
    25 Sep 2013, 12:08 PM Reply Like
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