JCPenney (JCP) Could Be Stealing Customers Back from Segment Peer
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JCPenney (NYSE: JCP) could be mounting a sales comeback. All thanks to Sears (Nasdaq: SHLD).
The path back won't be easy. The WSJ cited economic data in saying that department stares, which Sears and JCPenney are apart of, accounted for just 6.1 percent of sales last month, excluding car dealers, gas stations, and building-materials stores. That number compares with a share of 15.6 percent in 1993.
Notably, Sears recently reported an uptick in apparel sales, which might indicate it had been taking customers away from JCPenney. With the company's latest report, domestic apparel sales fell.
That comes in conjunction with JCPenney saying that November comps improved 10 percent, which would lead to the first quarter of comps growth in just about two years.
Should the trend continue and JCPenney CEO Mike Ullman's plan of clearing inventory and focusing more on private brands take hold, JCPenney investors might have a reason to smile once again.
Shares of JCPenney are up about 0.6 percent Friday.
The path back won't be easy. The WSJ cited economic data in saying that department stares, which Sears and JCPenney are apart of, accounted for just 6.1 percent of sales last month, excluding car dealers, gas stations, and building-materials stores. That number compares with a share of 15.6 percent in 1993.
Notably, Sears recently reported an uptick in apparel sales, which might indicate it had been taking customers away from JCPenney. With the company's latest report, domestic apparel sales fell.
That comes in conjunction with JCPenney saying that November comps improved 10 percent, which would lead to the first quarter of comps growth in just about two years.
Should the trend continue and JCPenney CEO Mike Ullman's plan of clearing inventory and focusing more on private brands take hold, JCPenney investors might have a reason to smile once again.
Shares of JCPenney are up about 0.6 percent Friday.
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