Do you have adblock enabled?
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(CNBC)   Looks like all those sales at Penneys have helped out   (cnbc.com) divider line 29
    More: Followup, Investment Technology Group, J.C. Penney  
•       •       •

2931 clicks; posted to Business » on 02 Nov 2013 at 6:17 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



29 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest
 
2013-11-02 06:25:20 PM  
ITG Investment Research - I subscribe to their publication.

a4.ec-images.myspacecdn.com
 
2013-11-02 06:30:32 PM  
And Leon is getting laaaaaaarger!

i.imgur.com
 
2013-11-02 06:30:46 PM  
1)  Raise prices 300%
2) Send out 50% off coupons
3) Profit!
 
2013-11-02 06:37:02 PM  
I liked their last failed business plan (none of this sale crap, just lower prices) better.
 
2013-11-02 06:44:10 PM  

HempHead: 1)  Raise prices 300%
2) Send out 50% off coupons
3) Profit!


They didn't need to raise prices. Spend some time looking at clothing prices on Alibaba. Even for "value retailers" like JCP what you see as a discounted price is 400-800% margins. Thus sales are everything, the margins take care of themselves. Especially if you're dealing with house brands, which look like a value by carrying a handful of designer labels at stupid high prices.
 
2013-11-02 06:50:36 PM  

wildcardjack: HempHead: 1)  Raise prices 300%
2) Send out 50% off coupons
3) Profit!

They didn't need to raise prices. Spend some time looking at clothing prices on Alibaba. Even for "value retailers" like JCP what you see as a discounted price is 400-800% margins. Thus sales are everything, the margins take care of themselves. Especially if you're dealing with house brands, which look like a value by carrying a handful of designer labels at stupid high prices.




The new CEO said shoppers were confused by the low prices and the lack of coupons and sales.
 
2013-11-02 07:03:45 PM  
At some point we have to abandon the myth of the magical all-omniscient visionary CEO taking over an existing operation.

Nothing beats experience within your industry.
 
2013-11-02 07:04:13 PM  
Same store sales down 4% vs. down 6% and stock goes up 10%?  Uh, no thanks.
 
2013-11-02 07:33:13 PM  

Marcus Aurelius: At some point we have to abandon the myth of the magical all-omniscient visionary CEO taking over an existing operation.

Nothing beats experience within your industry.


Yeah that guy from Boeing has totally screwed up Ford.

He didn't even know how to declare bankruptcy like the real auto guys.
 
2013-11-02 07:41:38 PM  
I think all the "mall" stores are going thank sooner or later. They aren't building new big enclosed malls with anchor type stores like JC Pennys, Sears, Macy's. Sears is only hanging on because it's brand reputation with appliances--and Home Depot and Lowes is giving them a run for their money for that, and Macy's is on life support; and moving into the strip mall market.

It's all going to higher end strip mall places where you shop at one of the strip mall...then get in your  car and drive 300 yards to go to another store.
 
2013-11-02 08:15:43 PM  

mcreadyblue: Marcus Aurelius: At some point we have to abandon the myth of the magical all-omniscient visionary CEO taking over an existing operation.

Nothing beats experience within your industry.

Yeah that guy from Boeing has totally screwed up Ford.

He didn't even know how to declare bankruptcy like the real auto guys.


Manufacturing high tech machinery is still manufacturing high tech machinery.  Only the marketing is different.

Trying to turn JC Penney from a discount chain into an exclusive destination like Nordstrom's was a joke, before, during, and after it was attempted.
 
2013-11-02 08:44:58 PM  

mcreadyblue: Yeah that guy from Boeing has totally screwed up Ford


But he did bring back the Taurus.  Bill Ford had become so hyperfixated on his pick-up trucks he forgot to take car of his four door sedan business.
 
2013-11-02 09:19:07 PM  

Marcus Aurelius: mcreadyblue: Marcus Aurelius: At some point we have to abandon the myth of the magical all-omniscient visionary CEO taking over an existing operation.

Nothing beats experience within your industry.

Yeah that guy from Boeing has totally screwed up Ford.

He didn't even know how to declare bankruptcy like the real auto guys.


Manufacturing high tech machinery is still manufacturing high tech machinery.  Only the marketing is different.

Trying to turn JC Penney from a discount chain into an exclusive destination like Nordstrom's was a joke, before, during, and after it was attempted.



There is a world of difference between building 3 million cars a year and 300 airplanes a year.
 
2013-11-02 09:23:01 PM  

optikeye: I think all the "mall" stores are going thank sooner or later. They aren't building new big enclosed malls with anchor type stores like JC Pennys, Sears, Macy's. Sears is only hanging on because it's brand reputation with appliances--and Home Depot and Lowes is giving them a run for their money for that, and Macy's is on life support; and moving into the strip mall market.

It's all going to higher end strip mall places where you shop at one of the strip mall...then get in your  car and drive 300 yards to go to another store.




I think Facebook has probably replaced going to the mall to hang out for teens.

And with malls, except for the anchors, you can't see what stores are in that mall when driving by. With the new fanged outdoor malls, you see all the random small stores.
 
2013-11-02 09:28:06 PM  

mcreadyblue: Marcus Aurelius: At some point we have to abandon the myth of the magical all-omniscient visionary CEO taking over an existing operation.

Nothing beats experience within your industry.

Yeah that guy from Boeing has totally screwed up Ford.

He didn't even know how to declare bankruptcy like the real auto guys.


He released the Ford Flex which competes with the Lincoln MKX, the Ford Edge, and every minivan on the planet (without the gas mileage or storage capacity thereof).

Nothing like robbing yourself of your own customers.
 
2013-11-02 09:43:46 PM  

drewbob21: Same store sales down 4% vs. down 6% and stock goes up 10%?  Uh, no thanks.


The value of a stock is determined by the outlook of a company. If the forecast improves, you're surprised the value of the stock reacts?

LoL?
 
2013-11-02 09:44:56 PM  

SomeoneDumb: I liked their last failed business plan (none of this sale crap, just lower prices) better.


That doesn't work with women, who treat shopping like a real life RPG where every sale is an opportunity to gain an experience point, level up, and brag about it to their friends.  Any math - if it is considered at all - is relative to the discount, not the absolute price.  50% off something that was originally marked up 200% is still considered a better deal than 30% off something that was marked up 100%.  Trading cards, aka coupons, are guarded and used either repeatedly or together to maximize the discount.  A proper combination of coupons to realize anything greater than a 50% discount is respected throughout the female kingdom, with the truly mentally ill professional-level shopper able to gain discounts of 70% or more on a regular basis.

Shopping without sales ruins the game.  It negates the purpose of "shopping."  Many of the male gender have mistaken shopping for "looking at things for hours on end for no reason."  There most certainly is a reason:  to get the best deal possible at that specific point in time.  A Western male doesn't even realize how good he has it when he joins a female companion on her quest.  In some Eastern cultures, there is no set price nor the idea of a coupon - every transaction is a Turn-Based Strategy battle of wits and wills between a shopkeeper and a customer.  Shopping trips have been known to last for weeks, with the NPCs and RedShirts (the male shopping companions) dropping dead of frustration before the game is won.
 
2013-11-02 09:49:15 PM  

Snarcoleptic_Hoosier: He released the Ford Flex which competes with the Lincoln MKX, the Ford Edge, and every minivan on the planet (without the gas mileage or storage capacity thereof).


The MKX is just the Lincoln version of the Edge.  They've been doing that for years.  That's not unusual.  The Edge is priced too closely to the Flex, but that's about it.  The Flex is a much bigger crossover.
 
2013-11-02 10:11:38 PM  

HempHead: wildcardjack: HempHead: 1)  Raise prices 300%
2) Send out 50% off coupons
3) Profit!

They didn't need to raise prices. Spend some time looking at clothing prices on Alibaba. Even for "value retailers" like JCP what you see as a discounted price is 400-800% margins. Thus sales are everything, the margins take care of themselves. Especially if you're dealing with house brands, which look like a value by carrying a handful of designer labels at stupid high prices.

The new CEO said shoppers were confused by the low prices and the lack of coupons and sales.


Its a fair point.  People who shop at JCP fit a certain archetype of shopper.  You can't simply change how you do business in a drastic way and expect your customers to want to follow suit.
 
2013-11-02 10:33:22 PM  
Then you can get some new clothes..I mean that dress and those shoes..UGH..
 
2013-11-02 10:40:07 PM  

spawn73: drewbob21: Same store sales down 4% vs. down 6% and stock goes up 10%?  Uh, no thanks.

The value of a stock is determined by the outlook of a company. If the forecast improves, you're surprised the value of the stock reacts?

LoL?


Meh.  Slightly less awful numbers are still awful.  I guess if people see the analyst's opinion as confirmation of the CEO's prediction that same store sales will turn positive next quarter... not my cup of tea though.
 
2013-11-02 10:59:54 PM  

drewbob21: spawn73: drewbob21: Same store sales down 4% vs. down 6% and stock goes up 10%?  Uh, no thanks.

The value of a stock is determined by the outlook of a company. If the forecast improves, you're surprised the value of the stock reacts?

LoL?

Meh.  Slightly less awful numbers are still awful.  I guess if people see the analyst's opinion as confirmation of the CEO's prediction that same store sales will turn positive next quarter... not my cup of tea though.

 What's your point really?
You sounded as you didn't understand why the stock price rises as the forecast improves. You still don't understand that, or is it something else now?
 
2013-11-02 11:18:43 PM  

dillenger69: And Leon is getting laaaaaaarger!

[i.imgur.com image 640x400]


I can make a hat, or a broach, or a pterodactyl.
 
2013-11-02 11:20:42 PM  
Thank you for the education.  I can hardly wait for the markets to open on Monday.
 
2013-11-03 12:23:16 AM  
You could buy Air Jordans and other Nikes at least into the '90s at JC Penneys. They were a normal department store selling goods to the middle and upper middle class. Now they sell lots of random low end crap, they aren't any nicer than Sears.
 
2013-11-03 05:03:56 AM  

spawn73: drewbob21: spawn73: drewbob21: Same store sales down 4% vs. down 6% and stock goes up 10%?  Uh, no thanks.

The value of a stock is determined by the outlook of a company. If the forecast improves, you're surprised the value of the stock reacts?

LoL?

Meh.  Slightly less awful numbers are still awful.  I guess if people see the analyst's opinion as confirmation of the CEO's prediction that same store sales will turn positive next quarter... not my cup of tea though.
 What's your point really?
You sounded as you didn't understand why the stock price rises as the forecast improves. You still don't understand that, or is it something else now?


I wouldn't touch JCP with a 10 foot pole. Their book value is basically zero. If you wanted to plunk down some money for some shares do so with the understanding you're not even making a calculated risk, you're gambling the ball is going to land on your color.

Given time they could very well turn things around but I'll keep my money in better companies until then.
 
2013-11-03 07:36:44 AM  
I forget who it was that said it, but I recall the saying "invest in what you understand".

What I understand is that the last time I went into a Penney's, half of the shelves were empty, and they didn't have either shorts or jeans in my size in any of the brands they'd managed to stock.  If I can't spend money, they can't make money.  If your stores consistently look like you're going out of business, you probably will.
 
2013-11-03 08:36:43 AM  

relaxitsjustme: spawn73: drewbob21: spawn73: drewbob21: Same store sales down 4% vs. down 6% and stock goes up 10%?  Uh, no thanks.

The value of a stock is determined by the outlook of a company. If the forecast improves, you're surprised the value of the stock reacts?

LoL?

Meh.  Slightly less awful numbers are still awful.  I guess if people see the analyst's opinion as confirmation of the CEO's prediction that same store sales will turn positive next quarter... not my cup of tea though.
 What's your point really?
You sounded as you didn't understand why the stock price rises as the forecast improves. You still don't understand that, or is it something else now?

I wouldn't touch JCP with a 10 foot pole. Their book value is basically zero. If you wanted to plunk down some money for some shares do so with the understanding you're not even making a calculated risk, you're gambling the ball is going to land on your color.

Given time they could very well turn things around but I'll keep my money in better companies until then.


Neither would I. I don't have enough understanding about the company or market to do such a thing.

On the other hand, I'm not going to make posts on Fark where I express my surprise if their stock does go up in the event that they manage to break even, or do better than their -4% forecast .
 
2013-11-03 10:37:22 AM  
It's an entirely different kind of sales model, altogether.
 
Displayed 29 of 29 comments

View Voting Results: Smartest and Funniest


This thread is closed to new comments.

Continue Farking
Submit a Link »
Advertisement
On Twitter





In Other Media


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.

Report