Tomahawk, WI 10/30/2013 (BasicsMedia) – J.C. Penney Company, Inc. (NYSE:JCP) continues to work on making its turnaround thus far complete. The company has tried various strategies to make itself attractive to investors and shoppers alike, but there is still very little to show for its efforts. The industry and some Wall Street analysts believe that it might be too late for JCP to make a complete turnaround. On the other hand, I belong to the group of analysts that believe JCP can still make a complete recovery and improve its financial health going forward. What reasons do I have for saying this?

JCP’s Stock Increases in August and September 2013

The company has seen a huge improvement in its sales up to September. The stock’s sales for August 2013 jumped by 10.8% compared to an increase of around 25.3% in September. The figures will keep on rising as we head to the busy holiday season. The company’s decisions to reconnect with its core base of customers have also started bearing fruit. Currently, JCP’s promotional events and activities are attracting a large base of its customers back to the company. Many shoppers find the promotional items and events to be quite beneficial to them.

JCP’s Customer Services Ranked Highest by Shoppers

It also seems that customers rank JCP quite highly when it comes to customer service. The current customer service ratings are among the highest in the company’s history. The other area that has seen a significant level of growth is inventory. If any company reports poor inventory then there is no reason to believe it can enjoy good sales or revenue collection. JCP has struggled with proper inventory for a very long time and this has affected its sales and revenues. I notice that JCP’s inventory in key private brands and basics are now back to acceptable levels.

The main goal that JCP had to achieve in order to kick-start the process of making a complete turnaround was to convince customers and shoppers to get back to its stores and make purchases. All its activities and past efforts failed to realize this goal, but during August-September, the company seems to have finally succeeded in achieving this. JCP has succeeded in this by placing special emphasis on reminding customers about its unique features that include stocking trusted private brands as well as key national brands, and unique attractions that differ from its rivals.

JCP’s Turnaround Still At Its Infancy

It is worth stating that JCP’s turnaround is still at its infancy. It has operated in an environment that has not been favorable to both retailers and customers in general. However, as we head towards the busy holiday season, things might just improve thus positively affecting JCP. The company is focused on improving the sales trends, as it believes that this will help it realize its goals of making a complete turnaround within the shortest time possible. Once its sales figures stabilize and keep growing, inevitably, JCP’s financial position will be much healthier.

I commend JCP for the little success it has achieved thus far, but continue to implore its top management not to relent until they succeed in making this retailer a truly profitable unit yet again.

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