Tomahawk, WI 12/10/2013 (BasicsMedia) – J.C. Penney Company, Inc. (NYSE:JCP) is a century-old retailer and operates many retail stores, some of which it has closed to help save on finances. The company has suffered declining revenue and net income for a long time now. When the troubles started, the board made a management change by kicking out CEO Mike Ullman and bringing in Roy Johnson.

This management change happened soon after money managers, Bill Ackman (Pershing Square) and Steve Roth (Vornado Realty Trust), joined the board in 2010 and pushed for changes. Investors should have it in mind that by the time the two funds mangers joined JCP board, the retailer was already struggling with short sales and profits.

When Johnson was brought in, he tried to remodel the store to make it an upper-market retailer. This move was expected to increase revenue and improve the bottom line. However, this expensive undertaking failed and even lead to the store losing its loyal customer base. Things turned uglier, and Roy had to leave. The board reached out for the former CEO Ullman and brought him back to take charge around April this year.

Since the return of Ullman, J.C. Penney Company, Inc. (NYSE:JCP) is showing good signs of rebound. However, there is still a lot of ground to cover. The initial signs of turnaround in JCP came from same store October sales and again in November. In October, comp sales grew by 0.9%, and in November, it was up 10.1%. Also, the Thanksgiving weekend data showed better than anticipated sales, more so in the company’s ecommerce platform.

The reason J.C. Penney Company, Inc. (NYSE:JCP) is seeing an uptick in sales is because of its heightened efforts to increase floor traffic through promotions and discount offerings. This is not a long-term strategy as it has the risk of reducing overall net income, however, it is a sacrifice to bring in more shoppers and perhaps keep them coming.

If this trend continues into 2014 and cost reduction is also sustained, J.C. Penney Company, Inc. (NYSE:JCP) is expected to make a significant turnaround, and hopefully, the mistakes of yesteryear won’t be repeated this time around.

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