Ron Johnson's Strategy Put to the Test as JCPenny (JCP) Opens Specialty Shops
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In a video posted on Tuesday, J. C. Penney (NYSE: JCP) Chief Ron Johnson said customer response to the Levi specialty shops at the store were "off the charts." He also said that, overall, specialty shops would do well and bring in new customers. The video showcased specialty shops from Liz Claiborne, IZOD, and private label JCP shops. The new shops will open this weekend at 700 of the company's 1100 stores.
Shares of J.C. Penny have declined 25 percent year-to-date. Shares sold off after the company reported that comp sales declined over 20 percent in the second quarter. The decline was caused by confusion when the retailers ended the use of coupons.
However, shares of J.C. Penny have risen 18 percent in the past 30 days and sentiment has shifted to a more positive tone, and some are optimistic that Johnson's comeback strategy may actually succeed.
The opening of the new Specialty shops this weekend will be the latest test for the company, with many more to come.
Shares of J.C. Penny have declined 25 percent year-to-date. Shares sold off after the company reported that comp sales declined over 20 percent in the second quarter. The decline was caused by confusion when the retailers ended the use of coupons.
However, shares of J.C. Penny have risen 18 percent in the past 30 days and sentiment has shifted to a more positive tone, and some are optimistic that Johnson's comeback strategy may actually succeed.
The opening of the new Specialty shops this weekend will be the latest test for the company, with many more to come.
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