Filed under: Consumer experience, Competitive strategy, Penney (J.C.) (JCP), Polo Ralph Lauren’A’ (RL)
Today’s Wall Street Journal has an article about the cost-cutting measures going on retailer, JC Penney (NYSE: JCP). The article, essentially an interview with CEO and Chairman, Myron “Mike” Ullman III, details Ullman’s changing of gears, from aggressive store expansion and online growth to scaling back in the face of a looming recession.
The CEO is expected to announce today plans to merge the buying and marketing operations for store and on the web sales, cutting as many as 200 jobs.
In the article, Ullman states he may scale back store expansion over the next two years.
Getting more of the consumer’s wallet
Ullman states, “Half of the families in the U.S. shopped with us at least once last year. But we only get 7% of their spending. So, our biggest opportunity in the downturn is to make each visit they make to our store, Internet or catalog more productive by offering more innovation.”
Expanding product lines
Ullman states that Penny’s is still planning to launch its much vaunted new product line, American Living, with Polo Ralph Lauren (NYSE: RL). “We think it’s a billion-dollar idea…American Living is J.C. Penney.’”
Ullman has been the conductor of a growing retail orchestra. While 2007 was a tough year for the retailer, JC Penny has turned its stores around, its product assortment has been refreshed, and Ullman seems to have a handle on where the consumer and market is going.
2008 should prove to be a pivotal year for this retailer.
Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund.
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