JC Penney earnings show retailer still reeling
Tom Dougherty, CEO – Stealing Share
12 November 2012
JC Penney is becoming a warehouse of brands, not a brand
JC Penney earnings continues to show the struggles continuing, as the most recent quarterly earnings reported a net loss of $123 million. This is just one sign of a declining brand, now called JCP, that has failed to make itself relevant in today’s retail market. JC Penney still reeling from past mistakes.
“Sears offers a cautionary tale for JCP. Once the sole purveyor of Craftsman and Kenmore products, Sears has since become the poster child for irrelevant brands.”
The other, and far larger sign, is that JCP’s strategy has been to leverage the labels it carries – Levi’s, Izod, Liz Clairborne, etc. – rather than build a strong JCP brand.
Sears offers a cautionary tale for JCP. Once the sole purveyor of Craftsman and Kenmore products, Sears has since become the poster child for irrelevant brands.
The simple matter is that JCP must define its audience. That strategy has worked for Nordstrom, which saw its sales jump 14% this quarter.
When a retailer ties itself to the brands on its shelves, it begins to look more like a warehouse of products rather than a shopping destination.
That is the definition of a brand. Right now, the JC Penney earnings demonstrate something else.
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