The recent year’s things have not been doing well for some of the JC Penny outlets in America. Even with the appointment of the new C.E.O, who completely got to revamp some of the JC penny outlets still that was not adequate enough to stop their closure? On top of that, the measures that were put in Place, could not even stop the further closure of the JC Penny Outlets in America. What is really the big problem with JC Penny? I was quite thinking that their problems were just normal problems that face some business but I had to revisit my school of thought as JC Penny may be in a serious problem than what we may think about. Maybe they are facing the same problem as the shoe repair industry which has closed lots of its outlets in the United States. No, of course, their line of product, remains relevant irrespective of their old name. Moreover, the departmental store has also been able to dance to the use of technology in all their business. Then, why close down most outlets when you have the market 100 plus years of experience in the Business. Probably I think that their experience in this game is not being utilized to the latter. This guy’s really need to get things right. Some of the salient factors that cause JC Penny to close some of its outlets include.
Too much competition from the Amazon and Google of this world: Going by the recent statistics and the entry of new firms that have cemented their foot on providing different sets of products similar to JC Penny on an online Platform, the competitions seem too much for JC Penny to bear. Amazon, for Example, attracts a lot of sales from the USA. Moreover, their delivery period for the ordered goods is pretty good. Amazon among many other companies have really dominated the Global Market and they sell even goods to Africa, Asia an among other continents. What’s has this has to do with JC Penny. It’s simply these company are able to benefit from the large international economies of scale that make them sell their goods in America at a discounted price but still make a lot of profits. The problem with JC Penny is that the company has always been trying to sell their commodities at a quite cheap price and still remain relevant in there. This has been their strategy. Clients fall for it but the soon they benefit from the discounts they just leave. Take an example of the use of the JC Penny master Card who will want to pay that lots of interest for a master card that can only be used in the JC Penny outlets. The client will just register and the sooner they get the cash discount with a given set of purchase, they will disappear like smokes. The end result for JC Penny will just be lots of customers on Paper but when it comes to the Balancing of the books of account the results will be worse than they expected.
Structural Changes by the new CEO
Generally, the incoming of a new CEO to a company may come with the different ways of doing things. Ellison Marvin inception came up with the shocking news of him proposing to close some of the Penny retail outlets in order to focus more on interment marketing for their product. But hell no. who in this country will believe the words of the CEO. Remember, there are other best options which he should have taken and still kill two birds with the same stone. If the JC Penny outlets were making a profit, then why do you close them regardless of the impact that their closure may bring to the final accounting results. I understand that profit is still profited whether made from the moon, stars or any other planet as Ellison Musk plans to do. Let’s also look at the second school of thought that may make us see that JC Penny is really making a big mistake here. If you were to shop online for a product today how will you do it and which companies will you consider. After asking yourself the rhetoric question you will realise that there are at least three to four companies that you will mention and JC Penny will not be anywhere on the list. You see I wonder if someone didn’t advice The JC Penny CEO that his actions may be moving JC Penny from the Frying Pan into the fire, On top of that there are other companies that I don’t think in any case whatsoever JC Penny will be able to match the type of online services they provide to the customers. How some of the online market and deliver the products to clients at a faster rate than even a client will anticipate is something that JC Penny cannot match. Indeed there are a lot of companies besides JC Penny which is closing some of their outlets in the USA. But it goes without saying that this company have established a great rapport with their clients and have been for several years selling their merchandise via the online platform.
In addition to the two mentioned factors, if the JC Penny move is to the selling of their product on an online platform if is to see light at the end of the tunnel, then, they must do something about their customer service delivery. The recent years have witnessed the company offering low-quality services to their customers not to mention that there has even complained about how hard is it event get one of the JC Penny customer care attendant via the mobile phone. Besides the latter, the customer service desk should also provide clear-cut information to the clients that will make them understand the offers on tables, when the offers are going to expire and what the clients must do to benefit the most out of his offers. If the latter aspects that are mentioned in this article are addressed, then JC Penny will escalate to higher heights.