JCPenney Records Strong Holiday Sales As Other Retailers Struggle
By Christine Kern, contributing writer
Turnaround seems to be working for JCPenney
While many other retailers are reporting lackluster figures for the 2015 Holiday Shopping Season, JCPenney announced that it saw its comparable store sales up 3.9 percent in November and December, signs that the retailer just may be figuring out its revamp.
“Despite unprecedented warm weather that significantly affected apparel sales across the Company, our focus on private brands, enhanced omnichannel execution and compelling gift giving selection resulted in strong holiday sales,” stated Marvin R. Ellison, CEO of JCPenney in a statement. “I am especially pleased with the accelerated comp sales improvement from November to December, including record online sales for the Company during the holiday season.”
Ellison stated, “Although we have much work to do, our strengthened omnichannel capabilities enabled our supply chain network to process millions of jcp.com orders this season, supported by 250 stores across the country that helped fulfill online orders using in-store inventory. With this level of selection, we saw more online customers take advantage of our in-store pick up option available at over 1,000 JCPenney stores nationwide. We look forward to capitalizing on this digital progress through 2016.”
Competitor Macy’s did not fare as well, whose 4.7 percent drop in same-store sales has forced the retailer to shed 4,800 jobs and close 40 stores nationwide in an effort to recoup its sales losses.
Ellison has been focused on righting the JCPenney ship after the misguided leadership of CEO Ron Johnson in 2012 and 2013. In August, Ellison announced that the company would heighten attention to ecommerce as part of the turnaround. Ellison has stated that he wants to reclaim JCPenney’s spot as a “world class retailer.”
In August, Ellison stated “Although we have significant work to do as a company to regain our status as a world-class retailer, I am pleased with the resilience and the efforts of our associates. I also remain confident in our ability to achieve the long-term financial targets we have laid out.”
“We are admittedly behind the retail industry in our omni-channel strategy,” Ellison stated on the August earnings call, using the example of the in-store pick-up of online orders. Other retailers, including Kohl’s and Macy’s, have already been offering this service, while Penney will only be rolling out the service next year.
But the positive holiday sales figures for JCPenney, combined with the lukewarm numbers of some of its chief competitors, means that the retailer just might be catching up.