Thursday, September 26, 2013

Store Intel: J.C. Penney (JCP) Food for Thought


Enough said about their liquidity issues here are some thoughts we would like to share:
  • Q3 we can now surmise is not close to their expectations
  • Cooler weather pattern has provided a temporary lift to their current business--the same can most likely be said for all retailers the past 10-14 days
  • 2012 Q4 was a negative 32%---doubt it could be worse and so does JCP
  • Applaud their efforts to secure financing ahead of the all important Q4---this will allow them to focus on driving sales
  • The internet business is low hanging fruit and ripe for significant improvement--another fine move by previous management to ignore this section of their business
  • Be mindful this company is in a start-up mode except with enormous debt and rebuilding  ahead. Patience is needed as we look at this story
  • Worse case scenario they close 100 or more stores during 2014. No harm at all and a position we would applaud.
  • Ullman is an experienced  retail veteran who will make this work

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