J.C. Penney Co.'s cost cutting and inventory reduction over the holiday season appears to have worked in favor of the company despite somewhat weak sales. Now, the low-cost retailer plans to amend that softness in the coming months by more aggressively competing for customers.
The store announced plans to expand their market share by prompting existing costumers to spend more in stores and visit more often while working to attract new costumers.
J.C. Penny plans to do this by concentrating on exclusive brands, like their Madden Girl by Steve Madden and other low-cost collections from high-end designers while bettering its stores and web site. What J.C. Penny won’t do that many stores of its kind have is further discount items. J.C. Penny has instead, concentrated their efforts on making better products that they are convinced costumers will be willing to pay for.
For the quarter that closed Jan. 30, J. the company posted profits of $200 million, or 84 cents a share, from $211 million, or 95 cents a share, in the same quarter in 2008.
The company attributes losses to going after the wrong type of business, which they refer to as “nonprofitable.” In 2010, they pledge to pursue only profitable business. Investors responded to the claims pushing J.C. Penney shares up by 7% to $27.78.
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