J.C. Penney Company Inc (NYSE: JCP) is an American chain of retail department stores based in Texas. It has over 1000 department stores spread across 50 US states and Puerto Rico. Besides the conventional merchandise, JC Penney (NYSE: JCP) stores offer leased services of Sephora, optical centers, jewelry and Seattle’s best coffee. Since 1998 company has also been an internet retailer.
Since then, JC Penney (NYSE: JCP) has undergone many changes, which included acquisitions, internet stores, but the company closed down its entire catalog businesses by 2011.
JC Penney (NYSE: JCP) faced hard times in February 2011, when the company was accused of spam dexing. This was a planned move that increased JC Penney (NYSE: JCP) website’s ranking in Google (NASDAQ: GOOGL) search results. In response to this fraud, Google (NASDAQ: GOOGL) took drastic measures and reduced the company’s visibility on its search engine. JC Penney (NYSE: JCP), ended up terminating its contract with SearchDex, its search engine consulting partner.
After this incident, JC Penney (NYSE: JCP) appointed Ron Johnson as its new CEO. Since then the company has undergone numerous changes of closing and opening new outlets, adopting new strategies. This instability has resulted in sales going down by 32% compared to last year. By November 2013, Ullman announced a promotional department store strategy with an aim to boost company performance. But in January, 2014 JC Penney (NYSE: JCP) closed down another 33 underperforming stores, leaving 2000 employees jobless. He explained this move as a way to reexamine performance and set profitable long term objectives. Towards the second quarter of 2014, the company stocks were once again in double digits.
Recent developments showed changes being made at a higher level. Marvin Ellison, the current Home Depot (NYSE: HD) CEO is to be brought on board as president and CEO-designee. His name will also be on the board of directors. Ullman will be the executive chairman of the board of directors for a year. These are all necessary and urgent measures required to boost company performance. Ellison was considered for this position as he has an impressive profile and work experience. At a mere 49 years of age, he offers 30 years of experience in the retail industry. Before joining Home Depot (NYSE: HD), he worked with Target (NYSE: TGT) for 15 years at different positions.
The press has also shed light on Ellison’s impressive career record. Since 2008 he has been executive vice president for various US stores. He is the operations leader for about 2000 Home Depot (NYSE: HD) stores. He also held the position of president of Northern division, and before that senior vice president for Global logistics. He handled all national and international logistic operations with US, Canada, Mexico, China and another 35 countries. After the announcement JC Penney (NYSE: JCP) shares fell by 6.8% on Friday to $7.12, but Monday predictions claim that the shares will rise by 7% resulting in $7.61 per share. The 52 week stock ranges in between $4.90 to $11.30.