Just a few months into serving as interim CEO of J.C. Penney, Stanley Shashoua said he sees signs of growth in the business. We see them around but we don't know what goes on behind the scenes. On the heels of these triumphs came a two-for-one stock split in March 1993; a new advertising campaign reflecting the company's invigorated stance (JCPenney--Doing It Right); year-end retail sales just shy of $19 billion (up 5.4 percent); and income of $940 million (up 21 percent) due in part to stronger catalog sales of $3.5 billion (an 11 percent increase). See the list", "JCPenney Store Closings Penney IP, LLC", "J.C. Penney sale to landlords Simon and Brookfield is completed", "J.C. Penney store closings list released: Is your local store facing liquidation in bankruptcy? Those stores expanded the lines of merchandise and services that an average J. C. Penney carried to include appliances, sporting goods, tools, garden\lawn merchandise, restaurants, beauty salons, portrait studios, auto parts, and auto centers. By June 17, J. C. Penney reopened approximately 827 stores; most of the 154 scheduled for permanent closure in 2020 were among those reopened, with final closing sales in progress. [90] On March 26, J. C. Penney announced the hiring of Bill Wofford as chief financial officer. The company also launched a massive leveraged employee stock ownership plan (LESOP) in 1988. Other big retailers started in mail-order and then launched into retail stores. LEWISVILLE, Texas - (Oct. 25, 2021) - JCPenney announced today the appointment of Marc Rosen as chief executive officer, effective Nov. 1, 2021. In the 1960s, JCPenney expanded to include Alaska, Hawaii, and Puerto Rico. For the first time in our nation's history, Executive Order 12898 recognized and sought to address what community members and leaders had been saying for decades: harmful pollution . Auto Centers JCPenney had Auto Centers during the 70s and 80s. J.C. Penney's new owners are looking for a new leader for the struggling retailer, which emerged from bankruptcy earlier this month. The so-called "mother store", in Kemmerer, opened as the chain's second location in 1904. Annual sales exceed $10 billion. Mike Ullman, the retailer's former CEO, was announced as his replacement shortly afterwards. The advent and strong growth of the specialty apparel store also meant tough competition for JCPenney. 2015. to address Penney's falling sales, where he was credited for revitalizing the home improvement chain. The company continued to open stores at a fast clip. [122], In June 2008, an ad called "Speed Dressing" emerged ending with the J. C. Penney logo and slogan "Every Day Matters". 2002: Penney celebrates its 100th year. Penney's health suffered while he was in the Midwest, and his doctor advised him to move to the cooler climate of Colorado. [89] On February 28, J. C. Penney announced its intent to close 27 stores in 2019, including 18 full-line department stores and nine home-and-furniture stores. Penney's logo used from 1963 to 1971 but still on stores until the 80's. Apr 26, 2023, 11:00 AM PDT. Dylan Hollingsworth/Bloomberg/Getty Images. Like other businesses, JCPenney rebounded and had good growth in 1975, but its executives began to suspect the company needed to be restructured. He is a 25-year retail industry veteran, who was a senior executive at Levi Strauss and Walmart WMT +0.5%. Penney CEO Jill Soltau, who had been tapped to revive the. While the company responded to a shaky economy and adjusted its retail businesses accordingly, its insurance division far outshined other operations with a pre-tax income surge of 44 percent from 1990's $55 million to $79 million in 1991. Penney states, We feel that the Penney company is well equipped to make a substantial contribution toward thrift and savings of the nation. The store count reaches 1,609 locations. He relocated to Colorado at the advice of a doctor, hoping that a better climate would improve his health. [49][50] Prices would also not end in 9 or 7 and would instead use whole figures to price items. Investors believed low-margin items like appliances were squeezing profits, and that discount and self-service home-center stores were doing a better job than JCPenney in the hardware business. Photograph by Nancy Newberry for Fortune JCPenney CEO Marc Rosen has no intention of adding to the. With these officers in place, the company launched a massive reorganization to transform the company from a mass merchant into a national department store. A major reorganization of the company from a mass marketer into a fashion-oriented national department store during the 1980s, along with the relocation of its corporate headquarters from New York to less expensive Texas, put JCPenney in a strong position to compete in the tough retailing climate of the 1990s. A fourth catalog distribution center, in Lenexa, Kansas, was added in 1978. In 1983 Howell, who most recently held a vice chairmanship (along with David R. Gill, who'd started with the company back in 1953), was elected the sixth chairman of the board, and David Miller was named president. Though the company has been struggling for the past several years, JCPenney cites COVID-19 as a large reason for Fridays bankruptcy filing. By 1915 the company had 83 stores and the next year ventured east of the Mississippi River for the first time with stores in Wausau and Watertown, Wisconsin. Gensch comes from Sprouts Farmers Market where he was their CCO. The launch, which was accompanied by an ad campaign during the 80th Academy Awards, was the company's largest private brand launch. Belle Isle, Ramona, Honor Brand, and Nation Wide were private label names for piece goods, and Big Mac, Waverly, and Lady Lyke were labels on work shirts, men's caps, and lingerie, respectively. In 1909, Penney moved his company headquarters to Salt Lake City, Utah to be closer to banks and railroads. The company reports an accumulated $3.7 deft load on February 1. Doug Pierce, an expert in online search from Blue Fountain Media, described the optimization as "the most ambitious attempt to game Google's search results that he has ever seen". The company operates 1,075 stores in all 50 states, in addition to Puerto Rico and Mexico. The repeatedly delayed and over-budget Eglinton Crosstown LRT project is being held up by some 260 quality control issues and there is still no credible timeline for its completion, the CEO of . [21], In 1983, JCPenney discontinued its appliance, hardware, outdoor equipment, and auto center departments, and also sold its automotive centers to Firestone. The deal was approved by the U.S. bankruptcy court for the Southern District of Texas two months later. [11], In May 2022, the company announced that it was returning to its Plano headquarters.[1]. The company boomed in its early days in Western mining towns because it offered all goods at "one fair price" and brought fashionable goods from the East to remote towns. Jake Lahut , Oma Seddiq, and Lauren Frias. In 1996 the company moved in several directions to regain the footing lost in 1995: allocated $2.1 billion in capital expenditures over the next three years to open 100 new domestic stores and refurbish 500; expanded its international presence through varied licensing agreements; and announced plans to acquire the Eckerd drugstore chain for a combination of cash ($1.3 billion) and stock. Retail sales fell from 1990's nearly $16.4 billion to $16.2 billion, but income and per share earnings nosedived (from $577 million to $80 million and from $4.33 to .39 respectively). But the old problems that have faced Penney and other mall-based . [115], On September 9, 2020, Brookfield Property Partners and Simon Property Group agreed to purchase JCPenney for about $800million, including $300million in cash and assuming $500million of debt,[116] which was later approved by the court on November 10, 2020. Source: International Directory of Company Histories, Vol. This was the first time shares fell below $1 ever in the 110-year history of the company, which started trading on the New York Stock Exchange in 1929. [citation needed] Currently, Seattle's Best Coffee is still expanding caf locations within J. C. Penney locations across the country. [35] In 2004, the company added 14 more stores and exited the drug store division after 35 years, with the sale of its Eckerd division. JCPenney CEO Jill Soltau speaks during an interview in Fort Worth, Texas, in 2019. - Introduced successful Sephora cosmetics shop-within-shop concept. [15] By 1941, J. C. Penney operated 1,600 stores in all 48 states. The entrance to Little Rock's University Mall. 1983: The company introduces the Halston III line of fashion merchandise, the first collaboration between a high-end designer and a mass merchandiser. [121] Sephora had already announced plans to contract exclusively with Kohl's by 2023, and had piloted Sephora Inside Kohls at select store locations. JCPenney has 60,000 employees, of which 24 are in a leadership position. [59] In August, William A. Ackman, of Pershing Square Capital Management, continued his efforts to remove Thomas Engibous, the company's chairman of the board of directors. The company's first order of business was to expand the fashion programs in men's, women's and children's departments, and the company divided its stores into two categories, metropolitan (based in regional shopping centers) and geographic (based in smaller communities). 2017: In order to pay off part of its debt load, JCPenney sells its Plano, Texas headquarters campus for $353 million. A Strategic Mistake that Haunts JC Penney. As consumers, we often take for granted all the hard work that goes into building a great company. Allen Questron served as Chairman and CEO of Federated Department Stores from 1990 to 1997. Ullman then served as chairman of the board of directors, but was relieved of his duties in January 2013. In 1995 JCPenney's recovery lost its momentum, falling short of both its own and analysts' expectations. Headquarters 6501 Legacy Dr, Plano, Texas, 75024, United States (972) 431-1000 CEO Marc Rosen Revenue $9.3 B Employees 50,000 Founded 1902 Funding History JCPenney raised a total of $3.3 B in funding over 2 rounds, and is a public traded company. [87] On December 26, the stock price of J. C. Penney (NYSE: JCP) fell below $1 per share. Web. When the Great Depression hit, the company coped by cutting back its inventory and trying to purchase goods at lower prices so it could pass the price cuts on to customers. The company discontinues its Treasury discount store brand. The company admits that the new sales policies and merchandise misjudgments have led to a disastrous business decision. James Cash "J. C." Penney Jr. (September 16, 1875 February 12, 1971) was an American businessman and entrepreneur who founded the J. C. Penney stores in 1902. Though he had quietly been giving thousands of dollars to local churches and organizations, in 1923 he founded Penney Farms, a 120,000-acre experimental farming area in northern Florida for down-on-their-luck farmers. [67] S&P cited J. C. Penney's 37% fall in market value to $2.7billion (equivalent to $3.14billion in 2023) was "more representative of the mid-cap market". At the same time, William Batten, a vice-president, conducted a study in 1957; the results indicated the company should adapt to changing consumer spending habits, especially by beginning to sell on credit instead of for cash only. New to his team is Sharmeelee . [53] In July 2012, the company announced that it was laying off 350 more workers at its headquarters. [citation needed] The company also sold its six Mexico stores to Grupo Carso, which rebranded five of the stores as Dorian's and the other one as Sears Mexico. "[66] Ullman is removing the radio frequency identification technology and returning to security tags because shrinkage has "added 100 basis points on margins in the third quarter". [95][96] Days earlier, it was reported in a regulatory filing that J. C. Penney would give bonuses totaling nearly $10million to the company's senior managers, which included $4.5million to CEO Jill Soltau. That same year, fashion designer Roy Halston, signed a six-year, $1billion deal with JCPenney to sell a line of affordable clothing, accessories, cosmetics, and perfumes ranging in price from $24 to $200. This store was located at Black Horse Pike Center in Audubon, New Jersey. The original Mother Store has remained in operation. [21], In 1980, the company closed the unprofitable Treasury discount stores to focus resources on its core retail stores. CEO Ron Johnson, who began his tenure in November 2011, tries to develop Americas favorite store by creating a specialty department store experience. The executive leadership understands the risks but goes forward with the plan. 1971: Founder James Cash Penney passes away at age 95. In August, Albert Gonzalez's defense lawyer announced JCPenney was a victim of a computer hacker, although the company stated that no customers' credit card information had been stolen. Listen to this article 2 min. Stores were opened in Anchorage and Fairbanks, Alaska in 1962, followed by Honolulu, Hawaii in 1966, and Puerto Rico in 1968. On March 31, J. C. Penney announced an extension of the planned April 2 reopening, with a new date not possible to be determined at the time. In 1946 Earl Sams was promoted to chairman, with Penney as honorary chairman, and Albert Hughes, a former Utah store manager, was elevated to the presidency. NEW YORK, NY, UNITED STATES - 2018/07/08: JCPenney's Manhattan store, in the former Gimbels flagship, opened in 2009. In 1983 JCPenney announced a $1 billion program to give its stores facelifts and rearrange merchandise. Google took retaliatory action and drastically reduced the visibility of J. C. Penney in the search results. . Moving its corporate headquarters to just outside Dallas, Texas, JCPenney was able to cut $60 million from its annual budget although about 1,250 New Yorkers lost their jobs. [73][74], In January 2017, J. C. Penney sold its headquarters campus and surrounding land in Plano, Texas to Dreien Opportunity Partners as a leaseback sale to maintain operations at the location. The jcpenney.com website becomes the largest online retailer of apparel and home furnishings. The local banker cautioned Penney against opening a "cash only" store, as three others had failed in Kemmerer, but Penney didn't want to accept mining company scrip or credit. In 1987 the company discontinued sales of home electronics, hard sporting goods, and photo equipment in its stores. [94], On March 15, 2020 when businesses were ordered to temporarily close in many States, the chain closed all of its stores and furloughed its employees. JCPenney is starting the new year with a post-Chapter 11 restart, new owners, new financing and soon will have a new CEO. JCPenney was different from many of its competitors with its late entry into the catalog mail-order business. Currently, the previous stores are occupied by H&M at Supermal Karawaci and Matahari Department Store at Mal Taman Anggrek respectively. The space that became available was then used for women's apparel. In May 2020, JCPenney filed for Chapter 11 bankruptcy protection and, in September 2020, Brookfield Asset Management and Simon Property Group agreed to purchase the company for around $800million in cash and debt. Based on our data team's research, Marc N. Rosen is the JCPenney's CEO. Foundry Supply Co. (discontinued solo stores, brand moved to JCPenney stores), men's Big & Tall apparel, superseded by SJB and Arizona. Annual sales total $2,800. Further, James E. Oesterreicher was named president and Gill retired after 39 years with the company. Returned as CEO in 2013 after J.C. Penney suffered a tumultuous two years under replacement Ron Johnson. The Penney store at Plaza Las Amricas mall in San Juan, Puerto Rico, which opened in 1968, featured three levels and 261,500 square feet (24,290m2). Penneys discontinues the line in 1988. [93], On January 19, 2020, J. C. Penney announced plans to close six stores. - Focused Penney on home appliances, but shares plunged. The line, named Halston III, would not last long, as it would be poorly received and discontinued after about a year. Returned as CEO in 2013 after J.C. Penney suffered a tumultuous two years under replacement Ron Johnson. 1976-85: Mass Merchandiser or Department Store? [38] J.C.Penney also re-introduced cosmetics with the opening of Sephora "stores-within-a-store" inside some J.C.Penney locations. JCPenney's president, David Miller, added vice chairman and COO to his titles, and the company began focusing on four major merchandising groups by dividing them into separate business divisions: women's, men's, children's, and home and leisure. In 1913, the company was incorporated under the new name, J. C. Penney Company, with William Henry McManus as a co-founder. Hale. Figures for 1994 further demonstrated the company's achievement, with $20.4 billion in retail sales ($800 million from Arizona brandwear), a 6.8 percent comparative store sales increase, and net income topping $1 billion. Penney chose to open his first Golden Rule store in Kemmerer because many of his Evanston customers lived there. In 2013, Soros Fund Management sold over 19 million J. C. Penney shares after only owning them for a few months. Penney OpCo LLC, doing business as JCPenney and often abbreviated JCP, is an American department store chain that operates 667 stores across 49 U.S. states and Puerto Rico. Eckerd operates 2,699 stores in 23 states. Earnings for 1990 fell to $4.33 per share from overall revenue of nearly $17.4 billion, slowed by the uncertainty over the Persian Gulf and the coming recession. Michael Kramer, JCPenney's chief operating officer, came in . [114] On July 31, 2020, it was announced that 21 stores, including the "Mother Store" in Kemmerer, Wyoming, would be auctioned off as part of the proceedings. In February 2008, the company launched the "American Living" brand, as developed by Ralph Lauren, across several product lines. [83] On October 2, J. C. Penney announced former Jo-Ann Stores CEO Jill Soltau as their CEO, effective October 15. J. C. Penney credit cards were first issued in 1959. 1952: Penneys passes the $1 billion mark in annual sales. JCPenney's new owners, Simon Property Group and Brookefield Asset Management, which purchased the ailing retailer after it filed for bankruptcy in May, have launched a search for a new CEO to replace Soltau. Also in 1983, it began selling goods online through the Viewtron videotex service. Penney put in three years as a salesman, and Callahan and Johnson decided to make him a manager and partner. Construction on the new company headquarters in Plano, Texas broke ground in 1990 and were completed in 1992. J. C. Penney replaced Aropostale from the S&P MidCap 400 Index. [51], In April 2012, nearly 13% home office staff in Dallas were laid off and a call centre in Pittsburgh was closed down. [100] On July 7, 2020, J. C. Penney announced that they would close two stores in New York City; one at the Manhattan Mall, which was closed immediately and the Kings Plaza store in Brooklyn, which closed on Sunday, September 27, 2020.