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J.C. Penney Files for Bankruptcy

chiph 6y ago
I'm sad to see this happen. But even 15 years ago they were having problems - some stores had talented buyers and would stock good clothes, and others were not much better than a K-Mart. I haven't been in a "good" Penny's since then. Starting around 2012 they entered a steep decline which can only be blamed on the poor leadership of Ron Johnson, the former Apple retail exec. He tried to take them up-market by switching to name-brands, and changed their name to "JCP" (for some reason). But the typical Penny's shopper just wants good clothing at a reasonable price, and to save some money with a coupon. He totally misread the customer base.
- pfranz 6y ago
  I actually liked the changes I saw when Ron Johnson was hired on. It was the first time I consistently stopped at a department store since my mom dragged me as a kid. It was the only department store that got rid of the "regular price $99, this shelf 40% off, yellow tags $30 off" nonsense. From what I heard, their customers liked the price gamification. I'm not one for name-brands, but the quality and style seemed a step up from basics at other stores and the straightforward prices seemed reasonable. I do buy the story that they were losing their old clientele much faster than they could attract a new clientele--maybe that new clientele was never coming in a sustainable way. But when he was swapped out I immediately saw those things change back and stopped going. All of the department stores seem to be in the same boat. Sears had two silly logo redesigns in the past 15 years, but didn't seem to even try to pursue new customers.
unstatusthequo 6y ago
I have to be honest, it’s surprising this didn’t come sooner. Like years sooner.
HeavenFox 6y ago
In retrospect, saw it coming. When this COVID chaos first started, I ordered a pressure cooker for in-store pickup at the JCPenney near where I live, anticipating having to cook more often. They charged my credit card and sent me an email the item is ready to pickup. When I got to the store an hour later I found that it was shut down by local police two days ago (!!). Trying to get a refund from them was an impossible task - customer service agent say only the store can issue refund, despite the store being closed. I filed a chargeback, and JCPenney decided to contest it, claiming "The item is ready. The customer just need to pick it up after the coronavirus pandemic" and my CC issuer, Citi, somehow sided with them and denied my chargeback. Their customer service finally gave me my money back after a month and a half. The takeaway from the story? Either JCPenney is so short on cash that they have to take such desperate measure, or their IT system is so antiquated that is cannot handle a simple refund, or both. Either way it reflects poorly on the company, and I certainly won't miss them if they don't survive this.
chriselles 6y ago
J C Penny has been dead man walking for 20 years.

I'm sad to see this happen. But even 15 years ago they were having problems - some stores had talented buyers and would stock good clothes, and others were not much better than a K-Mart. I haven't been in a "good" Penny's since then. Starting around 2012 they entered a steep decline which can only be blamed on the poor leadership of Ron Johnson, the former Apple retail exec. He tried to take them up-market by switching to name-brands, and changed their name to "JCP" (for some reason). But the typical Penny's shopper just wants good clothing at a reasonable price, and to save some money with a coupon. He totally misread the customer base.

pfranz 6y ago
I actually liked the changes I saw when Ron Johnson was hired on. It was the first time I consistently stopped at a department store since my mom dragged me as a kid. It was the only department store that got rid of the "regular price $99, this shelf 40% off, yellow tags $30 off" nonsense. From what I heard, their customers liked the price gamification. I'm not one for name-brands, but the quality and style seemed a step up from basics at other stores and the straightforward prices seemed reasonable. I do buy the story that they were losing their old clientele much faster than they could attract a new clientele--maybe that new clientele was never coming in a sustainable way. But when he was swapped out I immediately saw those things change back and stopped going. All of the department stores seem to be in the same boat. Sears had two silly logo redesigns in the past 15 years, but didn't seem to even try to pursue new customers.

unstatusthequo 6y ago

I have to be honest, it’s surprising this didn’t come sooner. Like years sooner.

HeavenFox 6y ago

In retrospect, saw it coming. When this COVID chaos first started, I ordered a pressure cooker for in-store pickup at the JCPenney near where I live, anticipating having to cook more often. They charged my credit card and sent me an email the item is ready to pickup. When I got to the store an hour later I found that it was shut down by local police two days ago (!!). Trying to get a refund from them was an impossible task - customer service agent say only the store can issue refund, despite the store being closed. I filed a chargeback, and JCPenney decided to contest it, claiming "The item is ready. The customer just need to pick it up after the coronavirus pandemic" and my CC issuer, Citi, somehow sided with them and denied my chargeback. Their customer service finally gave me my money back after a month and a half. The takeaway from the story? Either JCPenney is so short on cash that they have to take such desperate measure, or their IT system is so antiquated that is cannot handle a simple refund, or both. Either way it reflects poorly on the company, and I certainly won't miss them if they don't survive this.

chriselles 6y ago

J C Penny has been dead man walking for 20 years.