J.C. Penney Q1 same-store sales down 16.6%, missing estimates

Plano, Texas -- In preliminary results, J.C. Penney Co. on Tuesday reported that same-store sales in its first quarter decreased approximately 16.6%, a deeper drop than was expected.  

The company, which will report full results on May 16, said that it anticipates total sales of approximately $2.635 billion for the quarter, down some 16.4% from $3.152 billion in the same period last year.

Penney said it estimates cash and cash equivalents to be approximately $821 million as of May 4, 2013, with total debt is expected to be approximately $3.818 billion.

The company attributed the sales decline partly to the construction of home departments in 505 stores and to its prior pricing and marketing strategies, which it said are being changed under its new and returning CEO Mike Ullman.


JCP Renewal

Step #1 has been accomplished. The resignation of Johnson. Step#2 has yet to be accomplished. The installing of a new company spokesperson. Step #3 has yet to be accomplished. Return to grass roots, middle America and its values. Step #4 has yet to be accomplished. The hiring of a new CEO with JCP like merchandising experience and a winning record. No disrepect to Mr. Ullman. Step #5 has yet to be accomplished. The entire reevaluation of all merchandise, in store boutiques, sales area "best use" of inventory. Step #6 has yet to be accomplished. A regeneration of all existing personnel by real world seminars by real world persons in the effort to reinstall company morale and expectations for the future. Step #7 has to some extent been accomplished. The rehiring of former [winning] personnel. Step #8 a dialog with those formerly offended whose absence began the JCP decline. JCP has been effectively BOYCOTTED since the ascension of Ron Johnson. This has to be reversed and publically. Failing to bite the bullet and do the things that got you there will most certainly witness your further decline.

Getting Back to Square One

This isn't rocket science. Just retrace your steps, follow the cracker crumbs. Where and why did the plunge begin? Answer: Ron Johnson .. now history. The first necessary step. New public spokesperson ... Ellen has GOT TO GO. She can explain she wants to spend more time with family or concentrate on her TV programming or whatever. Have a powwow with the "mothers." Get it? Retrace your steps. Do a William Howell number ... remember him? Back to the Future. It isn't all about sales or all the Ron Johnson tricks who was never a retail rag merchant CEO to begin with. So who hired him? The "board be dumb?" Lesson learned. Your market is middle America. Back to the corn fields, the wheat fields, small town America. Recapture the JCP market that was there 20 years ago. It's still there and "wanting" to return to "that" America. JCP, you need a entirely new make over, nothing less is going to bail you out of the Ron Johnson decline. You have to not only do the merchandise number but also the personnel number. New "grass roots" CEO. New spokesperson ... a MUST. Dialog with middle America "former" customers Johnson lost for you with his liberal approach. Unless JCP implements what needs to be done the same store sales will remain flat or decline. You need a bright new conservative CEO star. No disrepect to Mr. Ullman. You need a new spokesperson or persons. You see what Johnson did for you. Like I said, "it's not rocket science." Believe it or not JCP you have been boycotted since Johnson.And why? Follow the cracker crumbs. Change or stagnate ... or worse. Remember, "you did it to yourself."
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