For the third quarter JC Penney’s net sales declined 5.8 per cent. Comparable sales fell 5.4 per cent on an unshifted basis. Marking out the calendar shift this year due to the 53rd week in 2017, comparable sales dropped down by 4.5 per cent.
The US-based department store chain’s women’s and men’s apparel along with accessories were the brand’s top performing segments in the recently concluded quarter. The company expects comparable sales for fiscal 2018 to be in low single digits. JC Penney operates more than 860 stores across the US, Puerto Rico and also offers its services via its exclusive e-commerce platform.
JC Penney finds itself weighed down by years of errors and muddled attempts to establish a clear identity with shoppers.
By the end of 2010, sales had fallen ten per cent from their 2006 high. Without testing shoppers’ reactions first, JC Penney changed its advertisements, its logo, its store designs and its pricing model, all attempts to make the retailer more palatable to wealthier shoppers. Penney ditched top private-label brands with loyal followings and introduced new ones that had little relevance to low- and middle-income customers.
As rivals adopted digital strategies and invested to improve their store experiences, Penney's financial distress gave it little room to spruce up stores, buy trendy merchandise, and hire more employees.
