JC Penney might have reported a loss in the second quarter of 2015, but don’t let that news disappoint you if you’re a serious fan of the national retailer. While much of the news over the last several years regarding the one-time giant of home sales in malls. There was a time, which wasn’t as long ago as many often think when JC Penney was a dominant name in department store glory. However, those days have gone, and now the company is working through rebranding its retail operation in a way that makes sense for shoppers in 2015.
The results were not great, but they were better than expected. That is a statement for a store that has been on a year-over-year nose dive for the absolute bottom of the pile. Whether this single moment is a good reflection of the direction that the company is headed – remains to be seen. However, there isn’t much hope for the company if this isn’t a good sign of some kind.
CEO Marvin Ellison is optimistic about the future for JC Penney. He believes that good times are ahead for the company and that results should improve as the year progresses. That isn’t entirely shocking given the fact that we are headed into the biggest shopping season of the year for retailers – as back-to-school is heavily underway, but it remains to be seen if the company can support their high-hopes.
The goal right now for the company is growth of sales by 4 or 5 percent. That is a safe call, given the fact that growth of any kind seems like it would be a modest success. To really turn things around, growth of 10 or 20 percent would likely be required. In a year’s time, that simply isn’t something that can be expected. It remains to be seen how things will work out for the company in the long-term. Whether this is a periodic shot of success that will quickly flame out, or this is something bigger picture that is taking place with Ellison’s leadership.
Something has changed at JC Penney, but is it the thing that needs to change at JC Penney to make it great again?