J.C. Penney has a way problem.
All clothing lists at J.C. Penney-men’s, women’s, and kids-posted negative comparative store auctions for the one-quarter. Each fared worse than the retailer’s overall comp auctions for the one-quarter, which fell 3.5 percent.
Chief Executive Officer Marvin Ellison said he has ” no immense confidence “~ ATAGEND that the retailer can fluctuate apparel auctions into the black, although he observed a rise in the activewear and dress lists, which he articulated will make up a larger portion of its clothe business going forward.
Weak auctions were a following theme across the board for department stores this past one-quarter, part of a broader veer as physical retail buckles for the purposes of the force of e-commerce. Rivals Macy’s Inc ., Kohl’s Corp ., and Nordstrom Inc. each reported disappointing auctions numerals. One-time department store behemoth Sears Possession Corp. lately accepted” substantial skepticism” about its own future. Meanwhile, another gesticulate of store closings is punching countless retailers this year: Around 140 J.C. Penney places will close at the end of July.
Nevertheless, J.C. Penney Co. Inc. is trying to turn things around. It’s expanding a partnership with cosmetics beings Sephora, a strong label that helps draw customers into places, and its gadget and fine-jewelry transactions continue to grow. The companionship too sells a wide variety of fashion items at its places and online, from swimsuits and casual t-shirts to blazers and evening wear. It sells such garment names as Liz Claiborne, Dockers, and St. John’s Bay.
Ellison’s approaches did facilitate J.C. Penney post its first gain since 2011 last coming fiscal year, but the clothing questions continue to impede develop. Women’s apparel is the retailer’s largest list, accounting for 24 percentage of total net auctions in fiscal 2016. While there is good news for some categories, the overall characterization examines dark.
” It is critical for us to improve the implementation of its clothe segment ,” articulated Ellison.” And although our overall clothe business fought during the first quarter, we were encouraged by the strong customer response to our now-trending pieces in women’s .”
Neil Saunders, a retail analyst at GlobalData Plc, wrote consumers Friday that, for J.C. Penney,” the region in the majority desperate need of there shall be way .” He included however that J.C. Penney is moving in the right direction:” Spring collects showed some signalings of betterment, but there is much more work to do here if JCP is to turn this into a earning list .”
Ellison reaffirmed his commitment to the clothe business, but went on to say that” we also have to ramp up these other transactions so that it is possible to have more match across the part series .”