Even though J.C. Penney's (NYSE: JCP) same store sales dropped 12 percent in its most recent fiscal quarter, its stock price edged up a slight 0.8 percent to close at $7.77 on October 8. Investors are feeling more confident in the retailer's turnaround plans and less severe losses.
JCP is still trying to make up for its $985 million in losses from 2012. Even though it has re-implemented its coupon strategy, its renovated home departments are still struggling, according to its quarterly earnings report. JCP is revamping the sections' merchandise, pricing and layout after previous CEO Rob Johnston's strategy of collections of boutiques within JCP stores failed to catch on with shoppers.
Meanwhile, to boost sales for the holiday shopping season, J.C. Penney has replaced ad firm Young & Rubicam, which it hired six months ago, with three different ad agencies. Ad agency Doner was brought on as the lead creative agency, while EVB and Victors & Spoils will share responsibility for digital and social media marketing.
JCP needs an extremely successful holiday selling season or it will probably have to begin selling off stores, an analyst recently told Business Insider. To that end, the retailer raised $785 million in cash from a share sale last month, and said it should have more than $2 billion in liquidity at the end of the fiscal year.
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