Tomahawk, WI 11/12/2013 (BasicsMedia) – That J.C. Penney Company, Inc. (NYSE:JCP) is on the path to recovery is now eminent. It’s not just because the retailer reported a slight tick up in its October same-store-sales. The company has also sought injection that is expected to help in its rebound. The concern now is how properly the century-old retail chain is prepared to confront the brutal competition of the holiday season.

The company’s management is looking at the festive season as a possible rebound opportunity. The challenge is that its sales have yet to swing into the solid region. Much less is the customer traffic. JCP blew its opportunities last year when it attempted a botched upgraded. The company under the former CEO Ron Johnson had sought to appeal to the high upper end of the retail market, effectively alienating its core customer base. Recovering that loss bas has proven to be an uphill task for the new CEO, however, the company is already making steps in the right direction. This is why the company stated that its October sales ticked up, giving a sign that customers were willing to come back to the legendary store chain.

An attempt to attract and retain customers for JCP has been a big headache. The company is currently running heavily subsidized merchandize in order to increase its customer traffic as the lucrative festive season sets in. However, JCP seems to be disadvantaged to confront its peers in the retail market.

Its weak customer traffic doesn’t looking promising for better than expected sales through the holiday season. Also, the company’s cash-trapped condition denies it the financial muscles to mount brutal promotion that would attract it a wider retail customer base as it used to do in the years past. A lot of its peers like Wal-Mart Stores and Old Navy are expected to heighten the customer attraction game to levels which JCP can only admire.

Such promotional strategies which retail players are expected to put into play include cash prizes and free shipment. For JCP, forking $10 million on cash prize to promote traffic isn’t much, yet its much considering that it needs plenty of such $10 million to gain its position on stable grounds. Also, free shipment though less draining, is typically complex. It’s often tied to the customer spending which again may not work miracle for JCP this festive season.

So where does all this leave JCP? The retailer may still have to seek the light approach in its rebound efforts. Taking huge steps which may eventually hurt its position may not be a clever idea eventually. JCP is obviously a lion that has just woken up from slumber and this means that when it begins to charge, it would just be a matter of time before things move into the right position.

Investors should not that under the new leadership, JCP has been able to rid itself of non-core units and this has helped the company to cut its operation cost. Even though the stock is currently trading three times below its price in the past 12 months, it looks set to reclaim its spot in the near term. The company’s market cap is $2.61 billion.

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