JC Penney reports another massive loss in the fourth quarter
By Anne D'Innocenzio, APNEW YORK--J.C. Penney's, the mid-priced U.S. department store chain, has decided to bring back sales events after it reported another much larger-than-expected loss in the fiscal fourth quarter on a nearly 30 percent plunge in revenue.
March 1, 2013, 12:03 am TWN
The results mark a full year of massive quarterly losses and revenue declines that miss Wall Street estimates since J.C. Penney Co. began a turnaround strategy that included ditching most of its coupons and sales events in favor of everyday low prices, bringing in hipper designer brands such as Betsy Johnson and remaking outdated stores.
The quarterly performance puts additional pressure on CEO Ron Johnson, the former Apple Inc. executive who was brought about a year ago to turn the stodgy retailer that was losing money into a hip and profitable company that can compete with the likes of Macy's or H&M. In the past year since Johnson rolled out his plan, though, even once loyal customers have strayed away from the 1,100-store chain.
While acknowledging that Penney made some mistakes during a conference call with investors, Johnson said on Wednesday that Penney will start offering regular sales in stores — about 100 of the 600 or so the chain offered prior to the turnaround plan.
“Experience is making mistakes and learning from them, and I have learned a lot,” Johnson said. “We worked really hard and tried many things to help the customer understand that she shop any time on her terms. But we learned she prefers a sale. At times, she loves a coupon. And she always needs a reference price.”
In this Friday, Nov. 23, 2012, file photo, a shopper drags her purchases past a line of customers waiting to pay at a J.C. Penney store, in Las Vegas. The mid-priced department ...