J. C Penny's Dwindled Financial Statements

Analysis of J.C Penny’s Dwindled Financial Statements

The retail sector is confronted with a high rate of competition. Getting new customers, increase turnover, marketing, integrating with new and existing information technology changes can be some of the challenges that the retail division face. The J.C Penney company will not be left out of the contest to become the highest performing unit in the sector. This Case analysis addresses J.C Penney’s continues cash flow decrease, fall in stock prices and the possible solutions to the problems.

Background

The J.C Penney company is an American department store chain with 1095 locations in 49 U.S states and Puerto Rico. In addition to selling conventional merchandise, JC Penney stores often houses several leased departments such as Sephora, Seattle’s Best Coffee and jewelry repair. J.C Penney was formed by James Cash Penney in the 1902 Wyoming and grown tremendously a became listed on the New York Stock exchange by early

By 1951, 22 years after the company was listed on the New York Stock Exchange market, they made the first sales increase of $1 billion U.S dollars due to an introduction of the company’s credit card use (p. 2). The sales later increased to $3 billion by 1968 and in 1978 the sales skyrocketed to $11 billion dollars. By 1980s JC Penney spent $1 billion dollars to remodel its stores, transforming from a mass merchant to a national department store (Glazer, 2014, p. 2). According to Glazer (2014), J.C Penney made a net profit of $584 million with the help of the Allen Questrom as the CEO of the company, in 2004 (p. 2). Up till 2008, during the recession of the economy, J.C Penney started facing different financial crisis, low turnover, loss of customers from different of its stores nationwide and from January 2011 to February 2013 J.C Penney shares down by