JC Penney is making headlines yet again after it was announced that they would be shutting some of their stores down. Clothing categories at JC Penney from men’s, women’s, and kids sections haven’t been doing well in sales lately. The items at JC Penny each managed to do way worse than general comp sales for the period, with a 3.5% drop.
CEO Marvin Ellison said he does not foresee the retailer swinging clothing deals back into the light. However, he noted changes in the active wear and dress wear, which he said will make up a bigger segment of its attire business as they move ahead.
Slow sales seem to be a common denominator no matter how you look at it. Competitors such as Macy’s Inc., Kohl’s Corp., and Nordstrom Inc. each revealed frustrating low numbers. 140 JC Penney stores will be shut down in late July.
What’s Next For JC Penney?
In any case, JC Penney Co. Inc. is trying to find some form of solace with all the different obstacles they are currently facing. They will be extending their collaboration with Sephora, a popular cosmetics store that draws customers into stores. The appliance and fine jewelry sections seem to be doing fairly well otherwise. The company additionally offers a wide assortment of items at its stores and on the web, from bathing suits and everyday shirts to jackets and nightwear. Liz Claiborne, Dockers, and St. John’s Bay are just a few clothing lines offered as well.
Ellison’s action plan helped JC Penney post it initially benefits since 2011 during the last fiscal year; however, the dress issues keep hindering them from moving forward. Ladies’ clothing is the retailer’s biggest seller, representing 24 percent of 2016’s earnings.
According to a statement from Ellison, it is imperative for JC Penny to enhance the sales production in attire.
Neil Saunders, a local investigator at GlobalData Plc, sent out a statement to customers Friday stating that when it comes to JC Penney, their main area of concern is their attire. He also said, however, that JC Penney is taking the proper course of action.