This definitely won’t be JCP’s last holiday season. But I do think that the company will slowly shrink over the next 5-10 years, much like Sears.
It’s hard to tell how healthy the company is because it is held privately now. The bankruptcy did prevent immediate failure.
Just hoping stores remain closed again for Thanksgiving. Retail has ruined the day. No reason to be open Thanksgiving and Black Friday as sales don’t normally increase. They are just spread out over both days.
Now that comment is spot on, however again the coworker is the foundatiom in ALL Companies not just jcp.
Not all the stores are Real estate assets or located in Simon malls. Some stores are profitable and have strong sales growth. Simon is clearly running the stores on marginal staffing and not keeping up with the wage increases that the pandemic has pushed to the fo-e front. JC Penneys biggest struggles will be staffing. The stores will struggle and consumers will get angry. There is significantly less inventory in the stores and it looks cleaner and brighter but at the end of the day you can’t run an entire store with 6 people. They will lose in the end bc they can not provide the brick and mortar customer the experience they are seeking.
Wow, you both clearly do not work at jcp. They never tell you when they are closing YOUR store and years to close on a store by store basis? What? That's every Company out there.
My mom works at a Jcpenney in Eatontown NJ and they told the workers their store is closing in 14 months.
Maybe not after this holiday season, but I think that the dual ownership structure of the remnants of JCP is problematic.
I read a good analysis on seeking alpha, people misunderstand in general that Simon/Brookfield do not own the stores, they just bought the operations. The stores are owned by two REITs that were formed by the creditors of the former JCPenney which was essentially liquidated.
What this means in practice, I think, is that if you work for JC Penney your salary is being paid by Simon/Brookfield, but the store you work in is not owned by them. Simon/Brookfield being mall REITs have an interest in keeping the stores going to stop from losing a major anchor tenant. But ultimately that decision is in the hands of the two REITs, and if they see a better opportunity to sell that real estate and to a developer who pays them enough of a premium, they will likely do so.
This will take a long time to play out as each store is essentially independent. My guess is the JCPenney brand and stores slowly disappear, but it will take years.
Nah, way off on that thought.