Jc Penney Company Overview Essay Example

JC Penney Company Overview JC Penney Co. Incorporated was founded in 1902 in Kemmerer, Wyoming by James Cash Penney and William Henry McManus. Today JC Penney offers a range of family apparel, jewelry, shoes, accessories, and home furnishing products through a chain of department stores and their company website. JC Penney, headquartered in Plano, TX, operates in the United States and Puerto Rico, with a total of 1,108 stores. JC Penney also offers its products through a catalog channel. Each channel serves the same type of customers and provides generally the same merchandise mix. JC Penney’s business is conducted through a single segment, but revenues are reported by product category. In addition to their product categories, the stores offer a salon, optical, portrait photography, and custom decorating services. JC Penney receives merchandise from over 3,500 suppliers, both domestic and foreign. The company operates buying and quality assurance inspection offices in 19 countries. JC Penney faces competition from a variety of retailers. JC Penney operates stores within very competitive markets, usually within close proximity to competitors. 53 percent of JC Penney stores have a Kohl’s store within a five mile radius. Department stores, such as Dillard’s, Kohl’s and Macy’s provide direct competition for JC Penney. In addition to department stores, discount stores, such as Target and Wal-Mart are competing with JC Penney. These stores offer lower prices and are attractive to consumers in a struggling economy. JC Penney’s target market is women whose household income is between $35,000 and $80,000. A company executive said that they are targeting women with, “too little time, too little money, and two little kids.” JC Penney is focusing on “lifestyle merchandising,” which targets specific types of women. According to JC Penney, the different life style preferences are as follows:

Conservative – Seeks simple, practical and dependable pieces