Do you think that bankruptcy is more likely than a buyout? The cost to acquire the company and then the expense to try and turn it around doesn't seem like it would be a lucrative deal for anyone wanting to step in.
Why J.C. Penney's Pricing Strategy Changes Are Great For The Stock [View article]
The JCP I used to shop at has racks with a price tag on the top; so instead of letting the merchandise catch peoples eye first, it is the price that is first noticed.
It causes the store to be visually unappealing, and the merchandise itself doesn't look like it is in style. Much of it looks like senior citizen clothing at the price is not competitive either. There used to be lines at the cash register before Johnson took over, not anymore.
Why J.C. Penney's Pricing Strategy Changes Are Great For The Stock [View article]
Wow, JCP and those bullish on the stock really underestimate the knowledge of the American consumer.
I disagree that Ron Johnson has been honest or forthcoming about admitting mistakes. Second, I don't believe JCP marketing costs are less than the old business model, and really how much does it cost to change the price on a tag?
Third, if consumers are suckers for marking up a product, and then marking it down, why would JCP's think that the psychology of the consumer has changed, just because the store claims to have every day low prices? Wal Mart claims the same thing, but I know there are some items at Wal Mart I can get for less elsewhere.
So if buying into a JCP turn-around; really how many people do you know who shop at JCP or have a positive opinion of the store? If more than 5 I would be surprised.
J.C. Penney - Weak Quarterly Results Offset By Comforting 2013 Outlook [View article]
I doubt people will look back 3 years from now and be amazed at JCP's success. I look at it now and I'm amazed how quickly thier business has deteriorated. Every store at our local mall is busy, except JCP, what does that tell you?
Evaluating J.C. Penney As A Turnaround Play [View article]
I respectfully disagree. I think Johnson had an impressive resume and has over promised and under delivered. Alienating loyal customers without the ability to bring new customers in, results in not bring in enough cash. A turn-around requires investment, and with fewer customers raising capital becomes more difficult.
Meanwhile, JCP's competitors have been gaining market share at the company's expense. It will be very difficult, and expensive to try to win back the customers JCP lost. Management 101," it is less expensive to keep a current customer than to gain a new one".
For JCP it would be less expensive to get a new CEO than to keep the one they currently have.
Evaluating J.C. Penney As A Turnaround Play [View article]
The family and I used to shop at JCP often and did most of our holiday shopping there. Since the change we have done most of our shopping at Ross (ROST) and 0 at JCP. The merchandise looks cheap but the prices are still more than Ross. Also, a person can find better brands at Ross for a lower price.
I think Johnson is making a mistake by "staying the course" and not trying to bring back some of it's once loyal customers. JCP used to have coupons, spend X and take $10, $25, etc. off your bill. Bringing that promotion back for the back to school season, I think would have brought in more traffic than free haircuts for kids. I mean, if there's a long line or wait, people will say forget it and go somewhere else. Plus the coupons reach a wider demographic.
The only way I see this company turning around, is if they actually drop their stubborn, arrogant mindset. I'm long ROST, more growth, and it pays a dividend.
The Dividend Investors' Guide - Part VIII: How Much Growth Is Left For Household Products? [View article]
Thanks Mark for the scorecard and comparisons. I like P&G for the dividend yield also. I wonder if P&G could cut some celebrities from their advertising and compete more on price. I haven't followed Church & Dwight, but you mentioned the recession didn't put much of a dent in the stock price. Personally I do buy more CHD products because they are good quality and cheaper than P&G products, the same with Colgate. Good article, thank you.
There are winners and losers no matter how strong the economy is. Apple has been a winner even when the economy was lousy and gets better as the economy improves.
J.C. Penney Just Sealed Its Fate [View article]
I
Why J.C. Penney's Pricing Strategy Changes Are Great For The Stock [View article]
Why J.C. Penney's Pricing Strategy Changes Are Great For The Stock [View article]
It causes the store to be visually unappealing, and the merchandise itself doesn't look like it is in style. Much of it looks like senior citizen clothing at the price is not competitive either. There used to be lines at the cash register before Johnson took over, not anymore.
Why J.C. Penney's Pricing Strategy Changes Are Great For The Stock [View article]
I disagree that Ron Johnson has been honest or forthcoming about admitting mistakes. Second, I don't believe JCP marketing costs are less than the old business model, and really how much does it cost to change the price on a tag?
Third, if consumers are suckers for marking up a product, and then marking it down, why would JCP's think that the psychology of the consumer has changed, just because the store claims to have every day low prices? Wal Mart claims the same thing, but I know there are some items at Wal Mart I can get for less elsewhere.
So if buying into a JCP turn-around; really how many people do you know who shop at JCP or have a positive opinion of the store? If more than 5 I would be surprised.
J.C. Penney - Weak Quarterly Results Offset By Comforting 2013 Outlook [View article]
Evaluating J.C. Penney As A Turnaround Play [View article]
Meanwhile, JCP's competitors have been gaining market share at the company's expense. It will be very difficult, and expensive to try to win back the customers JCP lost. Management 101," it is less expensive to keep a current customer than to gain a new one".
For JCP it would be less expensive to get a new CEO than to keep the one they currently have.
Evaluating J.C. Penney As A Turnaround Play [View article]
I think Johnson is making a mistake by "staying the course" and not trying to bring back some of it's once loyal customers. JCP used to have coupons, spend X and take $10, $25, etc. off your bill. Bringing that promotion back for the back to school season, I think would have brought in more traffic than free haircuts for kids. I mean, if there's a long line or wait, people will say forget it and go somewhere else. Plus the coupons reach a wider demographic.
The only way I see this company turning around, is if they actually drop their stubborn, arrogant mindset. I'm long ROST, more growth, and it pays a dividend.
The Dividend Investors' Guide - Part VIII: How Much Growth Is Left For Household Products? [View article]
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