Boston, MA 02/05/2014 (wallstreetpr) – J.C. Penney Company Inc. (NYSE:JCP) faced its hardest test in 2013 struggling on all fronts amidst increased competition from fierce rivals in the markets. The company has employed numerous strategies to assist it in staying afloat in the market to minimal end desirable results. Taking into consideration the problems and challenges it faced in 2013, then the retail firm is in line for an even torrid season in 2014 despite commanding a huge market cap of $1.8 billion.
JCP losing its grip
A clear indication that the retail shop is losing its grip in the market is its announcement that it is planning to close a total of 33 stores across the US. No retail shop can close its stores if it is seeing future growth in its operation. This clearly shows that J.C. Penney Company Inc. (NYSE:JCP) is losing its market share in the market thus the unavoidable move of closing its stores in a bid to reduce its operating costs. The closing of the stores leaves a lot to be desired considering none of its other stores are performing to the desired levels. The holiday season that is supposed to be the peak operating season did not bring any major substantial results that JCP would have wished
Plans to slash its wage bill by essentially rendering 2000 workers jobless is another firm indication that things are not okay at JCP. The retail intends to use this move to save close to $65 million in a bid of boosting its cash flow. This is seen as the best option of trying to manage the worrying trend that has hit the company over the past few years. Things started going haywire prompting it to fire its CEO, went forth to implement ineffective strategies that have not brought any major success in the past few quarters
J.C. Penney Company Inc. (NYSE:JCP) continues to perform poorly in the market having closed the market on Tuesday at lows of $5.08 a drop of 10.56%