Dive Summary:
- J.C. Penney continues to struggle as the effects of the Johnson era are still being felt by the company. First quarter sales figures for the embattled company dropped roughly 16%.
- Following the recent overhaul and a return to its formerly successful business model, the issues most troubling for CEO Myron Ullman is pricing, according to reports.
- As the company continues to strive for a return to its previous form, many economists believe the retailer may experience continued declines for the second quarter.
From the article:
In addition, with the change back to a promotional strategy, inventory levels appear rather light on paper and in the stores. At the end of fiscal 2012 inventory was $575 million less than the prior year or –19.7%. Recent store visits at four of JCPenney’s top locations revealed wide aisles with scattered merchandise.
