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Clothes, drugs, and credit Who loves their style? Plenty of people. In 1996, a national consumer study named JCPenney America's favorite place to shop for women's clothing. It's the fourth-largest retailer in the U.S., and a recent turnaround in sales has the company sitting pretty. The retailing powerhouse began in 1907, when James Cash Penney bought the Wyoming-based Golden Rule chain. Within five years, the store was spreading through the Rockies under the name now familiar to millions of American shoppers. Today, in addition to its department store business, JCPenney owns 2,900 Eckerd drugstores (acquired in 1997), making it the fourth-largest drugstore chain in the U.S. It is also the largest catalog retailer in the country. The company diversified into insurance and credit services in the 1980s, and operates the largest privately-owned telemarketing network in the country. Although its giant department store formula was not successful in Belgium and Italy during the company's first international foray, the JCPenney name has since become well established in Mexico and Peru. With the purchase of 21 Brazilian department stores from Lojas Renner in 1998, JCPenney continues its push into Latin America. Touting the private brands Other department stores have successfully challenged JCPenney during the last decade, but the chain's revenues have begun to rebound thanks to the strong sales of private-brand lines of casual- and career-wear for the whole family. The company prides itself on the fact that its brand managers actually design the clothing for its private collections, unlike several other department stores that simply lend their names to pre-existing lines. Recent offerings include the Jacqueline Ferrar line of businesswear for women, and a casual line for women developed with Liz Claiborne. One of the most successful private label is JCPenney's Original Arizona Jeans Company, which ranks as the No. 3 jeanswear brand in the country. The company hopes to ride the brands' popularity by developing internal boutiques for each, and draw in the juniors crowd by distributing its new teen magazine, Noise. J.C. Pharmacist? Plans for the future include upgrading stores and some serious downsizing. This could lead to some movement in the upper management, including a new CEO to oversee the changes. JCPenney will be closing at least 75 stores by the end of the year and plans to lay off 5,000 employees, in hopes of saving up to $300 million a year in expenses. The company is now facing serious competition from the recently-rejuvenated Sears department stores, Dayton Hudson's booming Target discount stores, and big housewares retailers like Lechters and Bed, Bath & Beyond. JCPenney is counting on its thriving drugstores to rake in profits in upcoming decades, as aging baby boomers start spending less on apparel and more on prescription and over-the-counter drugs. JCPenney will add 575 new Eckerd stores by 2001 and sell 20 percent of the chain as a tracking stock, at the same time looking for a buyer for its credit card business, as well as its direct marketing unit.
JCPenney actively recruits college students on dozens of campuses across the country. Interviews are held on campus and on-site at any of JCPenney's 1,200 locations. The company favors business and marketing majors. Applicants are judged on the basis of leadership skills and "a flair for marketing." Applicants can also consult JCPenney's home web page, located at www.jcpenney.com, for links to specific position openings and online resume forms. JCPenney offers new management employees one of the most comprehensive, state-of-the-art training programs in the industry.
Supportive managers, but beware the axe Most insiders turn in high ratings for JCPenney's friendly culture, though recent downsizing at the firm hasn?t gone unnoticed. Many report a "competitive" work environment in which employees are "consistently supportive" of one another. One senior employee comments that "the associates in the Penney Company are what make it so outstanding and a place that breeds success." "Camaraderie" and a "social atmosphere" enable employees to learn from one another throughout their careers. Upper management is "always on hand," employees say, "and always available to help." However, recent downsizing has affected many at the management level. The company even instituted a "voluntary retirement program." Employees report that some middle-managers with more than 20 years of experience have been "senselessly" targeted as "victims of downsizing." However, one employee advises: "Don't let the downsizing scare you. It's all been for the best." It all balances out in the end Good benefits and reasonable hours make up for the "average" pay. "I feel the pay is a little on the light side," notes one insider, "but the company benefits are good." Benefits include a choice of five medical plans, a store discount, exclusive associate shopping nights, a fitness center, full-service cafeteria, doctor, and sundry shop in the company's corporate offices, and a "great" 401(k) plan. Under this plan, insiders tell us, the company matches up to 100 percent at the end of the year. Employees can put six percent of their salary in their 401(k). In the past few years, the company contribution has reportedly been about 75 percent; in 1997, the contribution was 73 cents on the dollar. On the down side, there's no winter bonus. Most employees report working between 40 and 50 hours each week, but that number can increase during the holiday season. Dress tends to be corporate, though some departments are business casual. JCPenney's "top-notch" training program earns high marks, and the company's size gives employees "frequent" opportunities for career advancement, though promotions sometimes require relocation.
Gary L. Davis Human Resources
Department store retailer;Catalog retailer
Dayton Hudson;Federated Department Stores;Sears & Roebuck;TJX;Wal-Mart;Walgreen More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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