Home > Business, Retail, Stock Charts > JCPenney (JCP) is a Bad AAPL

JCPenney (JCP) is a Bad AAPL

How much absolute crap has the public been fed about how JCPenney (JCP) was going to miraculously transform themselves into the AAPL of retailing? JCP was going to become our favorite place to shop, or some, B.S. But, it is looking more and more like all of the buy-side stock analysts that urged suckers, er investors, to purchase JCP stock and ride it all the way up to $40 or $42 per share were full of baloney. Seems to me that you can’t have junk, or crap, if you don’t have JCP.

To see how ludicrous predicting a plus $40 JCP stock price, take a look at the JCP 5-year stock price chart.

JCPenney JCP 5-year stock price chart

Apparently, stock analysts calling for $40 plus JCP stock price never saw this chart

After all, with the huge economic boom brought about by quantitative easing Helicopter Ben Bernanke and the boys at the Federal Reserve, why wouldn’t JCP stock reach into the heavens?

Instead, Icarus-like, JCP stock price got a little too close to the sun and is now falling back to earth.

JCPenney JCP 3-month stock price chart

JCP: But the stock analyst said it would go to over $40 per share...

I hate being lied to and I find it annoying when people can’t see the obvious. What in the world would make anyone believe that JCP and AAPL should be spoken in the same breath, much less that JCP will somehow transform its snoozapalooza anchor mall locations into Apple Stores?

Who came up with the crank concept of creating “a store within a store”? I prefer to call the strategy concentric circles of hell, but that’s me.

If I were in charge of JCPenney I would have closed down the unprofitable and marginal stores and remodeled every one of the crap mall locations like I have in my town. Instead of the traditional “rat searches for a piece of cheese strategy” whereby JCPenney makes its poor customers wander around aimlessly hoping to encounter what they are looking for, I would make it easy to shop there. The store would be open with signs indicating each department – not “store within a store”.

Employees would have a distinctive uniform in order to separate them from customers. Employees would not be allowed to hide from customers while they attempted to look busy folding clothes. In fact, employees would be required – in a not-too-aggressive manner – to make contact within second with each customer who came into their department. There would be something akin to a shopping assistant who would be certain to ask you if you found what you were looking for today, and if you answered “no” would offer to order the item and have it either shipped to the store or to your home. Cash registers would be clearly labeled and colored distinctively so they stood out from anywhere in the store.

When customer checked out they would again be asked if they found the items they were looking for. If not, there would be a kiosk-type display where an employee would find the item and offer to order it or – if the item was in stock – would go pick it up and bring it back to you.

Old line retailers like JCPenney, big box retailers like Lowe’s lose incalculable sums of money because they treat customer more like a nuisance than like the lifeblood of their business.

JCPenney’s silly junk marketing of everyday low prices, and crap ideas of becoming Apple are beyond wishful thinking. There is almost no hope that JCPenney will ever, ever, ever come close to achieving those ridiculous ideas. JCPenney could, however, offer a pleasant shopping experience with excellent customer service and grow its incremental sales. That is a tried and true method that, combined with taking advantage of the Internet, could prevent JCPenney from eventually meeting with the fate that awaits Sears and K-Mart. However, I doubt the CEO and many Senior Vice-Presidents will take the time to look at what really might work, and will instead continue to pump AAPL pie-in-the-sky ideas while watching JCP stock slide.

Disclaimer: The above is for informational purposes only. This should not be considered investment advice. Any investment decisions are your own and should be made after conducting your own independent research and / or in consultation with a professional investment advisor. 

  1. Dennis Coleman
    April 10, 2012 at 8:28 am

    I was going to leave a comment but then I read your ” about. ” I’m sure your random thoughts on how to transform a company in less than 60 days will be taken seriously.

    • Terry Kinder
      April 12, 2012 at 11:45 pm

      It’s interesting Dennis that: 1)You have a jcpenney.com email address; 2) Your comment doesn’t address the substance of anything written in the post.

      Even if I conceded your implied point that I don’t have the requisite expertise to evaluate JCPenney’s strategy (which I emphatically do not concede) others agree that JCP is headed the wrong direction.

      Steven P Dennis wrote a series of articles revealing the weaknesses of JCP’s “strategy”. He did so in a very well constructed 3-part series:

      Part 1
      Part 2
      Part 3

      Austin Smith, Retail Editor and Analyst at The Motley Fool, makes a valid point in a video interview that JCP – unlike Apple – is not differentiated in any important way to justify its new 3-tiered pricing strategy.

      My blog post title, “JCPenney (JCP) is a Bad AAPL sums up what both Dennis and Smith pointed out which is that JCPenney offers nothing of significance that its competitors can’t offer.

      In fact, Austin Smith points out that Target (TGT) is executing the concept of a town square or store within a store better than JCPenney. Target is implementing a mini-Apple store within its locations. So what brand is JCPenney offering that can compete with Apple within Target? It’s a little ironic that Target is executing this strategy while JCPenney supposedly aims to be the Apple of Retail.

      Of course, your point is that, it has only been a short time since Ron Johnson took over at JCPenney. My point is that Johnson’s strategy is not going to work. It’s not so much a matter of time as target. Johnson’s strategy points in the wrong direction.

      It won’t take long (I would say it is already happening) for customers and stockholders to vote with their wallets. For example, my Mom is a long-time JCPenney customer. She love the new Ellen ads, but she is shopping less without the pull of sale prices. I think Johnson’s strategy will simply lose many people her age who don’t have the time or inclination to re-think their buying habits and digest the new JCPenney image.

      But hey, what do I know right?

  1. March 25, 2014 at 10:06 pm
  2. April 15, 2014 at 1:00 am

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: