J.C. Penney is an American department store that was formed during the year 1902 and is headquartered in Texas, US. J.C. Penney is a popular retail industry that sells cosmetics, clothing, footwear, electronics, housewares, jewelry, and appliances.
Apart from these products, it also provides several leased department like Seattle’s Best Coffee, auto centers, Sephora, Salons, optical centers, jewelry, and portrait studios. J.C. Penney is a popular chain of American mid-range department stores and is positioned one of America’s most complete department stores. J.C. Penney has its business operations in about 1095 locations in about 45 states in the United States and Puerto Rico.
It has most of the stores in suburban shopping malls as the shopping malls have become famous over the years. J.C. Penney has introduced many own private brands when they had faced denial by some suppliers to access the expected inventories.
The SWOT analysis of J.C. Penney is listed below :
Strengths in the SWOT analysis of J.C.Penney
A strong legacy – J.C. Penney has a strong legacy of about 100 years in the retail sector and has strong brand equity.
Business operations – J.C. Penney has a diversified supplier base, good marketing campaigns, convincing private and national brands, and good point-of-sale technology initiatives along with cost and inventory management. It focuses to close any store that is underperforming and that is exiting its catalog business.
Customer retention – J.C. Penney focuses to enhance the customer’s experience in shopping by renovating, remodeling, and refurbishing stores along with refreshing its website functionality for keeping a tap on the steady migration to online shoppers. It also launched convincing new merchandise and the J.C. Penney Rewards program to attract more customers.
Good financial position – J.C. Penney has a strong revenue performance and a good financial position.
Weaknesses in the SWOT analysis of J.C.Penney
Dip in sales–J.C. Penney has been facing a dip in sales over the past few months. This will, in fact, reflect on its financial condition.
Less global presence – J.C. Penney has a less global presence, especially in emerging economies. This will be a hindrance to their business operations.
Low market share – J.C. Penney has a limited market share as compared to its competitors. This is a major weakness to its business as it impacts their growth.
Poor stock price – J.C. Penney has a continuing case of a weak stock price. Over the past years, their stock prices are down and their store locations are also disappearing.
Opportunities in the SWOT analysis of J.C.Penney
Disposable income of the customer – The customer’s disposable income is increasing that means the number of buyers is increased. This provides a great opportunity for J.C. Penney to increase its business operations.
Acquisition – J.C. Penney can acquire smaller retail chains to improve their business operations.
Enhanced advertising campaigns – J.C. Penney can increase their visibility by means of increasing their advertising and also providing more focused services to their customers. Moreover, increasing their advertising strategy can reach to a wide range of people.
Threats in the SWOT analysis of J.C.Penney
Presence of an online market – J.C. Penney faces a lot of competition from prominent e-retailers. It lacks a presence in the online market that is a serious threat to business growth. It also reduces the margin of the business.
Competitor’s expansion – Expansion from the competitors business can affect the business margins of the company.
Unfavorable conditions of business – Various unfavorable conditions will have a direct impact on business operations. This is a huge threat that affects business growth.
Import Tax – The import tax imposition can also impact the business operations. This is a huge threat to the business.