Is This the Future of J.C. Penney Company, Inc. (JCP)?

Originally, J.C. Penney had fought for the same customer that also shopped at Macy’s, Inc. (NYSE:M), along with Target Corporation (NYSE:TGT), Kohl’s Corporation (NYSE:KSS) and Dillard’s, Inc. (NYSE:DDS). This kind of customer was value driven and also appreciated quality products found at bargain prices. The psychology of coupon-cutting for bargain bin deals was at the heart of the customer that shopped at J.C. Penney Company, Inc. (NYSE:JCP). Confused by a new pricing strategy, these customers fled and bargain-shopped at other retail outlets instead, driving up profits at other stores.

The Foolish Bottom Line

Although J.C. Penney Company, Inc. (NYSE:JCP) is keeping cool through the storm, they have a lot of ground to gain with bringing back their core customer base. With the return of CEO Myron “Mike” Ullman, the tables have turned around slightly for this battled retailer. Share price has been up 14% since the former CEO took over. With first quarter results at $2.635 billion, things might be more cheerful for this apparel and home furnishing retailer.

Kaitlyn Tokay has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Is This the Future of J.C. Penney? originally appeared on Fool.com.

Kaitlyn is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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