But now, he's back. The companys stock price becomes extremely volatile and its credit rating is severely downgraded. Kramer consequently laid off 1,600 employees to change the company's workplace culture. [72] In February, J. C. Penney opened a support center in Bangalore, India. He called it "The Golden Rule" to symbolize his belief that the Golden Rule should apply to business life as well as to personal life. By the opening of the 1,000th store in 1928, gross business had reached $190million (equivalent to $3billion in 2023). It would take almost a decade to achieve the goals outlined in the JCPenney stores positioning statement, issued in 1982. James Cash "J. C." Penney Jr. (September 16, 1875 - February 12, 1971) was an American businessman and entrepreneur who founded the J. C. Penney stores in 1902. Materials and merchandise were scarce, yet the company increased its sales to $500 million in 1945. Auto Centers JCPenney had Auto Centers during the 70s and 80s. Atlanta was only the beginning. The line generates much publicity but ultimately damages the reputation of Halstons couture business. J.C. Penney and the Terrible Costs of Hiring an Outsider CEO. [80][81], In 2018, J. C. Penney closed permanently at Plaza Palma Real in Humacao, Puerto Rico, after Hurricane Maria devastated the store in September 2017. Wofford came to the company from The Vitamin Shoppe, where he had served as CFO since June 2018. 2012: JCPenney dramatically changes its structure. "Penney . Linden Street is sold exclusively in J. C. Penney stores and through its website. Here are 7 other high-profile departures in recent years. On March 31, J. C. Penney announced an extension of the planned April 2 reopening, with a new date not possible to be determined at the time. The company lowered its earnings forecast for the year to 13 cents per share at best, and said it could lose as much as 7 cents. See the list", "JCPenney Store Closings Penney IP, LLC", "J.C. Penney sale to landlords Simon and Brookfield is completed", "J.C. Penney store closings list released: Is your local store facing liquidation in bankruptcy? Warehouse Building (St. Louis, Missouri), "J.C. Penney is moving back into its former Plano headquarters", "2010 Form 10-K, J. C. Penney Company, Inc", "Boardroom Battle at J.C. Penney Over CEO", "J. C. Penney 2011 Annual Report, Form 10-K, Filing Date March 28, 2012", "SEC: 2019 Form 10-K J. C. Penney Company, Inc", "JCPenney Department Store Locations, Directions & Hours", "JCPenney closing more stores after bankruptcy. May 15, 2020: JCPenney files for Chapter 11 bankruptcy protection. Penney's health suffered while he was in the Midwest, and his doctor advised him to move to the cooler climate of Colorado. Jan 13, 2022. by George Anderson. [citation needed] The company also sold its six Mexico stores to Grupo Carso, which rebranded five of the stores as Dorian's and the other one as Sears Mexico. 1980: Inflation and high interest rates severely impact JCPenneys earnings. J. C. Penney logo used from 2012 until 2013[128], Beginning with the Marathon Hats line, JCPenney has introduced multiple private brands, partially in response to suppliers denying access to expected inventories.[129][130]. Earlier in 2018, the company announced it would cut 360 jobs at its stores and corporate headquarters. [104] On January 1, 2021, Soltau was replaced by Simon Property's chief investment officer, Stanley Shashoua. [30] In 1998, JCPenney launched its Internet store.[31]. In 1990 Miller retired and vice chairman Gill took on the former's responsibilities as COO of JCPenney stores and catalog service. Part of this land was sold to where the current Toyota North America HQ is now located. 1996: Penney acquires the Eckerd Drug Corporation. In 2001, J. C. Penney sold its direct-marketing insurance unit to Dutch insurer Aegon for $1.3billion (equivalent to $1.99billion in 2023) in cash to help refocus the company on retail. Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb, Horror Movies That Don't Look Like Horror Movies. J. C. Penney became the fourth major national retailer to file for bankruptcy in May 2020. The catalogs were distributed by the Milwaukee Catalog distribution center. However, the business move paved the way for other such high-end designers to sell their products at stores of varying price ranges in the future.[25]. [24], In 1978, the J. C. Penney Historic District in Kemmerer, Wyoming, was designated a U.S. National Historic Landmark. It was the largest J. C. Penney until a 300,000-square-foot (28,000m2) store was dedicated at Greater Chicago's Woodfield Mall in 1971. In May 2020, JCPenney filed for Chapter 11 bankruptcy protection and, in September 2020, Brookfield Asset Management and Simon Property Group agreed to purchase the company for around $800million in cash and debt. 18. Chip Somodevilla/Getty Images. On May 1, J. C. Penney announced a limited number of stores would reopen. From 1999 to 2000, he was the chairman, president and CEO of Barneys New York, and finally worked with J.C. Penney Company in 2000 as the chairman and CEO. JCPenney Home Stores stores that sold linens & home decor. At an analyst meeting in New York the same day, Johnson said, "I'm completely convinced that our transformation is on track." [99], On May 15, 2020, J. C. Penney filed for Chapter 11 bankruptcy and announced that there would be an additional 242 store closings, blaming the COVID-19 pandemic for its action. Allen Questron served as Chairman and CEO of Federated Department Stores from 1990 to 1997. The company--now with 1,602 stores--opened a store in Hampton Village, Missouri, in 1949 in a "drive-in shopping district," a precursor to suburban malls. [16][17] The company rebuilt the store as a shorter building on a larger footprint and followed up by building Anchorage's first public parking garage, which opened in 1968. Belle Isle, Ramona, Honor Brand, and Nation Wide were private label names for piece goods, and Big Mac, Waverly, and Lady Lyke were labels on work shirts, men's caps, and lingerie, respectively. [38] J.C.Penney also re-introduced cosmetics with the opening of Sephora "stores-within-a-store" inside some J.C.Penney locations. These discount operations proved unsuccessful and were shuttered in 1981. JCPenney reenters the major appliance business. [69] J. C. Penney's stock continued its decline until their first quarter results in 2014 showed signs of improvement, and sent the share value back into the double digits. Penneys enters the Belgium market and purchases a sizable interest in the retailer, Sarma, S.A. 1942: James Cash Penney gives a keynote address at the companys 40th anniversary celebration in Montana. - Eliminated Penneys catalog. Construction on the new company headquarters in Plano, Texas broke ground in 1990 and were completed in 1992. Apr 26, 2023, 11:00 AM PDT. With the announcement, JCPenney's shares rose 9%. In 1907 Callahan and Johnson dissolved their partnership, and Penney bought them out, taking over three stores. Thrift Drug, long dormant since JCPenney purchased it, scored some big points in 1984, when several major industrial companies became mail-order pharmacy customers. JCPenney CEO Vanessa Castagna ranked No. [11], In May 2022, the company announced that it was returning to its Plano headquarters.[1]. The company purchases a controlling interest in Renner S.A., Brazils largest fashion retailer. [100] On July 7, 2020, J. C. Penney announced that they would close two stores in New York City; one at the Manhattan Mall, which was closed immediately and the Kings Plaza store in Brooklyn, which closed on Sunday, September 27, 2020. 1963: On August 15, Penneys opens its first full-line department store, located at the King of Prussia Plaza in suburban Philadelphia. [111][112][113] On July 8, J. C. Penney submitted their bankruptcy exit plan to existing lenders, and also requested more time for negotiations. Listen to this article 2 min. JCPenney to Hire 650 Seasonal Workers in Chicago Area. [citation needed] By the mid-1980s, all JCPenney stores had discontinued sales of firearms. Penney CEO Jill Soltau, who had been tapped to revive the. to address Penney's falling sales, where he was credited for revitalizing the home improvement chain. Before this point, JCPenney carried rifles and shotguns branded as JCPenney but produced by numerous established firearms manufacturers. In August, Albert Gonzalez's defense lawyer announced JCPenney was a victim of a computer hacker, although the company stated that no customers' credit card information had been stolen. Penney OpCo LLC, doing business as JCPenney and often abbreviated JCP, is an American department store chain that operates 667 stores across 49 U.S. states and Puerto Rico. In eight states, customers could order from the catalog from inside JCPenney stores; a Milwaukee distribution center supplied the goods. The company also planned to offer buyouts to roughly 6,000 employees. 1974: In addition to shopping mall expansions, JCPenney establishes a plan to build smaller retail stores in less urban areas. Annual sales reach $4 billion. He was 26 years old and had grown up on a farm near Hamilton, Missouri. In 1946 Earl Sams was promoted to chairman, with Penney as honorary chairman, and Albert Hughes, a former Utah store manager, was elevated to the presidency. [75] The land has since been broken up and sold/developed. Annual sales exceed $10 billion. Though he had quietly been giving thousands of dollars to local churches and organizations, in 1923 he founded Penney Farms, a 120,000-acre experimental farming area in northern Florida for down-on-their-luck farmers. We will start off by introducing you to former CEO, Mike Ullman who managed JCPenney before and after the recession as well as his presence after next CEO Ron Johnson was fired. [67] S&P cited J. C. Penney's 37% fall in market value to $2.7billion (equivalent to $3.14billion in 2023) was "more representative of the mid-cap market". The Penney Building in Anchorage partially collapsed and was damaged beyond repair in the 1964 Alaska earthquake. 1922: Penney operates 371 stores with annual sales of $49 million. J. C. Penney logo,[127] originally used from 1971 to 2011 and again from 2013 to 2019. After relocating to its new headquarters in Plano, the company was rewarded with replenished catalog sales; record performances from JCPenney Insurance and JCPenney National Bank; retail sales of $18 billion, and a net income hike of $777 million with an ROE leap of 18.6 percent over 1991. [20] and its revenues reached $5billion (equivalent to $33.5billion in 2023) for the first time and catalog business made a profit for the first time. The company needed bigger headquarters because it had grown significantly in 38 years; it built a 45-story office in New York in 1964, where the company stayed until its later move to Dallas. [90] On March 26, J. C. Penney announced the hiring of Bill Wofford as chief financial officer. Another proprietary brand, the Original Arizona Jean Company (begun in 1990), soared in earnings to $400 million from the previous year's $90 million. In 1996 the company moved in several directions to regain the footing lost in 1995: allocated $2.1 billion in capital expenditures over the next three years to open 100 new domestic stores and refurbish 500; expanded its international presence through varied licensing agreements; and announced plans to acquire the Eckerd drugstore chain for a combination of cash ($1.3 billion) and stock. Jake Lahut , Oma Seddiq, and Lauren Frias. The so-called "mother store", in Kemmerer, opened as the chain's second location in 1904. The much-celebrated store is designed to compete reputation-wise with the Macys Herald Square flagship. The ouster of Fox's top . Will your store shutter? Callahan soon promoted young Penney to his Evanston, Wyoming, store to work with one of his partners, Guy Johnson. The company's first full-line stores, with all the new merchandise lines instituted by President Batten, opened in 1963 in Audubon, New Jersey, and King of Prussia, Pennsylvania. The company's first order of business was to expand the fashion programs in men's, women's and children's departments, and the company divided its stores into two categories, metropolitan (based in regional shopping centers) and geographic (based in smaller communities). Also in 1983, it began selling goods online through the Viewtron videotex service. JCPenney's stock plunged from a high of $51 a share to $17. Internet sales amount to $15 million for the inaugural year. The stock fell 68% over the course of 2018, including a 30% drop in December 2018 alone. With 32 departments, the 152,000-square-foot store is designed to be a prototype for future expansions into larger markets. Earnings rebounded as a result, rising from $4.11 per share in 1987 to $5.92 in 1988 from total sales of $14.8 billion. In April 1987, the company announced that it was moving its headquarters to Plano, Texas. The company discontinues its Treasury discount store brand. Retail sales increased only 0.9 percent for the year ($20.6 billion vs. $20.4 billion), income fell from 1994's outstanding $1 billion to $838 million, and comparative store sales experienced a 1.4 percent drop. [70], In January 2015, it was announced that J. C. Penney would close 39 under-performing stores nationwide and lay off 2,250 employees. The space that became available was then used for women's apparel. During its tenure, JCPenney opened two flagship stores: in 1995 on the upper ground level of Lippo Supermal (now Supermal Karawaci), and in 1996 on the upper ground and first level of Mal Taman Anggrek. J. C. Penney finished the quarter with just $181million in cash, down from $363million a year ago. The company also launched a massive leveraged employee stock ownership plan (LESOP) in 1988. Age: Dec. at 95 (1875-1971) Joanne L Bober Ken C. Hicks Ken C. Hicks is the CEO of Foot Locker. 1994: Womens Wear Daily names JCPenney as the Number One Best Store for Womens Apparel in the country. The company also began accepting American Express cards. [13] Callahan and Johnson asked Penney to join them in opening a new Golden Rule store. For the first time in our nation's history, Executive Order 12898 recognized and sought to address what community members and leaders had been saying for decades: harmful pollution . With these officers in place, the company launched a massive reorganization to transform the company from a mass merchant into a national department store. Figures for 1994 further demonstrated the company's achievement, with $20.4 billion in retail sales ($800 million from Arizona brandwear), a 6.8 percent comparative store sales increase, and net income topping $1 billion. [14] By 1917, the company operated 175 stores in 22 states in the United States. But the old problems that have faced Penney and other mall-based . The Hurst, Texas store, near the Plano headquarters, is outfitted with a fitness studio, childrens play areas, and other amenities. Since taking the reins as CEO and chairman of JC Penney last November, former Levi Strauss & Co. and Walmart exec Marc Rosen has been busy building out his C-Suite. The advent and strong growth of the specialty apparel store also meant tough competition for JCPenney. The company boomed in its early days in Western mining towns because it offered all goods at "one fair price" and brought fashionable goods from the East to remote towns. Below is a timeline that outlines most of the peaks and valleys, mostly peaks, of this great American retail institution. The company adopts the JCPenney moniker in its advertising. The company continued to open stores at a fast clip. [60] However, Ackman resigned from the board on August 12, and two new directors were subsequently appointed to the board, one of whom was former Macy's vice chairman Ronald Tysoe. J.C. Penney purchases the Milwaukee-based General Merchandise Company and enters the catalog mail order business. Earnings for 1990 fell to $4.33 per share from overall revenue of nearly $17.4 billion, slowed by the uncertainty over the Persian Gulf and the coming recession. [52] In June, Michael Francis (company president) left J. C. Penney after only eight months as president. Penney's logo used from 1963 to 1971 but still on stores until the 80's. The company has had four different CEOs in the past 10 years. Two years later, when James Cash Penney died at age 95, sales for the company he founded hit $5 billion and the catalog business made a profit for the first time. These lines provided $1.5 billion in annual sales, but were keeping the company from positioning itself as a true department store. Less than a month after JCPenney exited Chapter 11, CEO Jill Soltau has left the department store retailer. [94], On March 15, 2020 when businesses were ordered to temporarily close in many States, the chain closed all of its stores and furloughed its employees. Stanley Shashoua, Simon's chief investment LEWISVILLE, Texas - (Oct. 25, 2021) - JCPenney announced today the appointment of Marc Rosen as chief executive officer, effective Nov. 1, 2021. Other brands for juniors and young men's were launched that summer. Macys files a lawsuit against Penneys for illegally obtaining a merchandising agreement with the Martha Stewart brand. The company opens a trial store in Santiago, Chile. [55] That month, the company posted a second-quarter comparable-store loss of 22%, with internet sales dropping 33%. Opinions expressed by Forbes Contributors are their own. J. C. Penney planned to put "mini-Martha Stewart shops" in many of its stores in 2013, as well as create a website with Martha Stewart Living. She previously served as the Plano company's chief digital officer and . In 1925 when the company's 674 stores generated sales of $91 million, Penney was again giving some of his good fortune back, this time in establishing the J.C. Penney Foundation to fund a myriad of family-related agencies. The company also sells its auto center business. Most JCPenney stores were initially located in downtown areas, but, as shopping malls grew in popularity during the 1960s, the chain began relocating and developing stores to anchor the malls. The 5 Big Mistakes That Led to Ron Johnson's Ouster at JC Penney. [44], In June 2011, Ron Johnson who had previously led Apple retail stores in a period go high growth, became J. C. Penney's new CEO. [39] That summer, J.C.Penney also added a new brand to its home collection, "Linden Street." ", "JCPenney Store Closings JCPenney Company Blog", "JCPenney will close nearly 30% of its stores as part of its bankruptcy plan", "J.C. Penney liquidation sales at 136 closing stores underway with discounts up to 40% off", "13 more J.C. Penney store closings revealed: Department store continues bankruptcy store closures", "Forever 21 Bailout Team May Rescue JCPenney", "Bankrupt JCPenney, Sycamore Partners in acquisition talks: Report", "As Reports Swirl, What Could Amazon Want From JCPenney? Its unsustainable debt load, compounded by COVID-19, just pushed it over the edge. Foundry Supply Co. (discontinued solo stores, brand moved to JCPenney stores), men's Big & Tall apparel, superseded by SJB and Arizona. The company also introduced a communications system for broadcasting directly to its stores using satellite transmissions from headquarters. "JC Penney History 1902-59: Early history and incorporation James Cash Penney was born in Hamilton, MO. [12] In 1898, Penney went to work for Thomas Callahan and Guy Johnson, who owned dry goods stores called Golden Rule stores in Colorado and Wyoming. The Penney store at Plaza Las Amricas mall in San Juan, Puerto Rico, which opened in 1968, featured three levels and 261,500 square feet (24,290m2). Annual sales total $2,800. [21], In 1980, the company closed the unprofitable Treasury discount stores to focus resources on its core retail stores. Treasury Drug stores became Eckerd which JCPenney also owned. The Penney Building in Anchorage partially collapsed and was damaged beyond repair in the 1964 Alaska earthquake. On the heels of these triumphs came a two-for-one stock split in March 1993; a new advertising campaign reflecting the company's invigorated stance (JCPenney--Doing It Right); year-end retail sales just shy of $19 billion (up 5.4 percent); and income of $940 million (up 21 percent) due in part to stronger catalog sales of $3.5 billion (an 11 percent increase). He did not respond to a request for comment from NPR. The next year, the full brunt of the recession and the Gulf War hit consumers and JCPenney rather hard. [34] In 2003, the company opened three stores in strip centers in Texas, Minnesota and Indiana. All of the outlet stores were closed by 2011. Dylan Hollingsworth/Bloomberg/Getty Images. The company joins with Goodyear and plans auto centers to be located next to future stores. JCPenney announced Oct. 25 the appointment of Marc Rosen as CEO, effective Nov. 1. Penney enters the appliance business with its Penncrest brand, manufactured by GE Hotpoint. [9][10] Departments inside JCPenney stores include Mens, Womens, Boys, Girls, Baby, Bedding, Home, Fine Jewelry, Shoes, Lingerie, The Salon by InStyle, JCPenney Beauty, as well as leased departments such as Seattle's Best Coffee, US Vision optical centers, and Lifetouch portrait studios. In February 2012, JCPenney, renamed JCP, institutes a Fair Square pricing policy that eliminates sales and promotions. [citation needed] Currently, Seattle's Best Coffee is still expanding caf locations within J. C. Penney locations across the country. Stores were opened in Anchorage and Fairbanks, Alaska in 1962, followed by Honolulu, Hawaii in 1966, and Puerto Rico in 1968. The original Mother Store has remained in operation. [88], On February 6, 2019, J. C. Penney said it would stop selling major appliances on February 28, and that furniture would be limited to online and stores in Puerto Rico. The stores were closed due to low profitably and high expenses. In 1954 Penney created the James C. Penney Foundation (its predecessor, the J.C. Penney Foundation, went under during the Depression) to continue his philanthropy, and in 1957 he served as a charter member of the Distributive Education Clubs of America, helped create the Junior Achievement Clubs, and endowed a chair at Westminster College. In 1989 JCPenney was named the U.S.'s exclusive distributor for Olympic apparel, sold its JCPenney Casualty Insurance Company, and debuted the JCPenney Television Shopping Channel. [19] That year, the company adopted the JCPenney style in advertising. Returned as CEO in 2013 after J.C. Penney suffered a tumultuous two years under replacement Ron Johnson. 2009: After 46 years, Penneys discontinues its popular catalog, along with its large network of Outlet Stores. Fay's, most Kerr, and Thrift drug stores were re-branded Eckerd in 1997. (Photo by Justin Sullivan/Getty Images), In 1961, James Cash Penney compares pictures of. New York CNN Business . The company admits that the new sales policies and merchandise misjudgments have led to a disastrous business decision. 2017: In order to pay off part of its debt load, JCPenney sells its Plano, Texas headquarters campus for $353 million. 2016: JCPenney reports $4.8 billion of long-term highly leveraged debt. Principal Subsidiaries: JCPenney Collections Stores; JCPenney Home Stores; JCPenney Life Insurance Co.; JCPenney National Bank; JCPenney Specialty Stores; Thrift Drug Inc. [11] It had been established that once the company emerges from bankruptcy it is poised to save nearly 60,000 jobs, according to various independent studies. With over 1,200 stores in all 50 states as well as Puerto Rico, Mexico, and Chile, J.C. Penney Company, Inc. (JCPenney) is the largest department-store retailer and catalog merchant in the United States, with licensing agreements for its products throughout the world. In 1940, Sam Walton began working at a J. C. Penney in Des Moines, Iowa. 1983: The company introduces the Halston III line of fashion merchandise, the first collaboration between a high-end designer and a mass merchandiser. Oct 26, 2021. Whatever happens next is all up in the air. In recent years, JCP has opened stores in power centers, as well as stand-alone stores, sometimes adjacent to competitors. St. James Press, 1997. The company began accepting American Express cards as well as Visa, MasterCard, and JCPenney credit cards, and the bank was issuing its own Visas and MasterCards. Coupled with a "contemporary and fashion-forward environment," sales rose substantially in 1992 and 1993, due to a revitalized Worthington career collection and the debut and ongoing success of new bath and body products. In 1986 JCPenney acquired Units, a chain of stores selling contemporary knitwear and by the next year the company was well on its way to achieving the goals it set forth in 1982. In 1962 JCPenney got into the mail-order business for the first time by buying General Merchandise Company, a Wisconsin firm with a discount store operation as well. Here's a map of where they are", "Bankrupt JCPenney Is Closing its Manhattan Mall and Kings Plaza Locations in NYC", "J.C. Penney closing more stores after exiting bankruptcy. The company struggled through the 1970s, as upstart companies like Wal-Mart began selling goods at discount prices and long-time rivals like Sears gave JCPenney tough competition in the hardware and appliance departments. This list features past and present top J.C. Penney managers, including both current and retired J.C. Penney executives and alumni. Photograph by Nancy Newberry for Fortune JCPenney CEO Marc Rosen has no intention of adding to the. Retail sales fell from 1990's nearly $16.4 billion to $16.2 billion, but income and per share earnings nosedived (from $577 million to $80 million and from $4.33 to .39 respectively). The local banker cautioned Penney against opening a "cash only" store, as three others had failed in Kemmerer, but Penney didn't want to accept mining company scrip or credit. Private label brands were a major reason for the success of the company. He relocated to Colorado at the advice of a doctor, hoping that a better climate would improve his health. After J. C. Penney sold off Eckerd in 2004, the locations that continued to operate as Eckerd (some locations in the Southern U.S. were sold to CVS Corporation) still had J. C. Penney Catalog Centers inside the stores (which was a carryover from locations that were once Thrift Drug) and also continued to accept J. C. Penney credit cards. Rosen comes to the company from Levi Strauss & Co., where he served as . [101] On December 17, 2020, JCPenney announced that they would close 15 additional stores in March 2021. [21], In 1983, JCPenney discontinued its appliance, hardware, outdoor equipment, and auto center departments, and also sold its automotive centers to Firestone. [43], On February 12, 2011, The New York Times exposed the company's use of link schemes"spamdexing"to increase the J. C. Penney website's ranking in Google search results, especially during the holiday season. Web. 1927: Penneys celebrates its 25th anniversary. In 1913, the company was incorporated under the new name, J. C. Penney Company, with William Henry McManus as a co-founder. [48] On February 1, J. C. Penney began a new pricing method, with "Every Day" prices on most days reflecting what used to be sale prices, "Monthly Value" for certain items every month in place of sales, and "Best Price" the first and third Fridays of each month, tied to paydays.

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