Good Lifestyle

While they used to direct the perch, department stores has fallen from grace in recent years. Since the dawn of online purchases, fewer consumers go to the shopping center when they need new clothes, opting rather to travel without leaving the house. It was a direct blow for the business model of the department store, which offers a layout specially designed for purchases in person. However, JCPENNEY is one of the few big names that has managed to remain afloat, with Macy's and Nordstrom, but new data suggest that buyers abandon the retailer.

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In a financial deposit With the Securities and Exchange Commission of the United States this week, JCPENNEY announced results of the third financial quarter, which ended on October 28. Compared to the same period in 2022, the company saw a decrease of 10.7% of net sales, dropping to $ 1.5 billion against $ 1.7 billion. In addition, total turnover fell 11.1% during the quarter, after $ 1.6 billion, compared to $ 1.8 billion.

In the report, JCPENNEY said that the drop in sales was due to continuous "macroeconomic challenges", which also affected the company's credit cards component. The company noted that credit cards approval rates were solid and that the portfolio itself was healthy, even with the increase in interest rates and the decline in consumer economies. However, "the drop in delay fees, the cyclical increase in losses and higher program costs" reduced credit income compared to 2022.

There were positive aspects of the quarter, JCPENNEY attributing successes to the introduction of its $ 1 billion strategic plan, "Make It Count", which entered into force in early September. With the initiative, JCPENNEY said that it has observed an improvement in digital sales and store traffic, as well as the frequency of purchase of customers.

There was also an 11% increase in average sales of customers, which JCPENNEY cited as "a reflection of customer confidence in the value and quality of the goods".

The retailer has also improved the raw profits of goods. It was thanks to the reintroduction of national brands such as Adidas, Dickies and Wrangler, as well as improvements in margins in private brands like St. John's Bay and Liz Claiborne, said JCPENNEY in the dry file. The company's inventory has also improved, the total down 12% compared to the same era last year. AE0FCC31AE342FD3A1346EBB1F342FCB

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However, in the conversation with Retail Dive, the general manager of Globaldata Neil Saunders said the positive points may not prevail The negatives of the department store chain.

"Many steps aim to update JC Penney on the fundamentals of retail rather than being really innovative and transformers," he told The Outlet about JCPenney's revival. "The increase in pedestrian traffic is a green growth in hope, but the challenge is to convert this into regular customs and exploit it to develop the sales line."

Saunders also stressed that JCPENNEY is already a "weak actor in a low segment of retail", which makes him even more difficult to survive in "the relatively low consumption economy".

The last drop in sales conforms to the results of the second quarter, where net sales were also down, in July Depot to the dry . Again, JCPENNEY has attributed difficulties to "the macroeconomic environment" exerting pressure on discretionary expenses.

Despite some disconcerting data, according to Glossy reports, there is a certain hope for JCPENNEY during the current holiday season . The retailer stands out from the crowd by offering prices before inflation.

"Our client is definitely affected by inflation. Everyone is", " Michelle Wlazlo , told The Outlet. "We have kept our prices flat because we know that our customer must make compromises at the moment."

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