J.C. Penney files for Chapter 11 bankruptcy protection, plans to close some stores, as COVID-19 adds to its sales, debt woes
With the success of discount chains like Walmart and Target, declining foot traffic to malls and the emergence of off-price retailers like T.J. Maxx and Marshall’s, J.C. Penney stores “look old-fashioned” and the company's online experience is insufficient, Saunders said.The coronavirus has deepened the ongoing troubles for department stores, which have had a difficult time adjusting to the rise of digital threats and nimble physical competitors that offer affordable fast-fashion apparel.
Camilla Yanushevsky, a retail stock analyst for CFRA Research, said she believes the company has reached the end of its rope. While some of its moves, such as its decision to launch Sephora beauty shops within its stores, paid off, the company also made a series of costly strategic mistakes as it tried to adjust to the digital age.
“We are very focused on the all-in shopping enthusiasts,” Soltau told investors in a conference call Feb. 27. “These are customers who love to shop. They live life to the fullest. They are the most interested in their personal style.”
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