Premium Essay

History of Jcpenney and Target

In: Business and Management

Submitted By blcolvin
Words 1996
Pages 8
History of J.C. Penney and Target
By Rebecca Raschke

J.C. Penney
James Cash Penney and two partners opened the Golden Rule dry-goods store in 1902 in Kemmerer, Wyoming. The following two years they opened another two stores in other parts of Wyoming. In 1907, Penney bought out his two partners and took on new ones. By that time Penney had 34 stores and had $2 million in sales. The firm was incorporated in 1913 as the J.C. Penney Company Corporation. The company moved headquarters to New York City the following year and in 1915 stores had opened in Mississippi and Wisconsin. In 1917 Penney became chairman of the board and had opened 175 stores and Earl Sams became president of the company.
As Penney became wealthier so did his charity. In 1923 he founded Penney Farms in Northern Florida for struggling farmers. In 1925 J.C. Penney Foundation was established and the company had grown to 674 stores and over $91 million in sales.
In 1927 J.C. Penney became a publicly traded corporation listed in the New York Stock Exchange. In 1929 J.C. Penney increased its stores to 1,392. When the Great Depression hit the company coped by cutting back on inventory and by purchasing everything on a bargain so the savings could be passed onto the customers. Penney was so well established that people turned to J.C. Penney for their basic items and that is how the company made it through the hard times and even increased sales during the depression. By 1936 sales rose to $250 million and stores grew to 1,496.
During World War II the company sold a record number of war bonds. Even though merchandise was scarce sales increased to $500 million in 1945.
Penney believed in the cash and carry policy because he didn’t want his customers to be burdened by debt. All of his stores carried this policy until 1958, when he finally gave way to selling on credit with the help of store credit…...

Similar Documents

Premium Essay

Target

...Case 19 – Target Corporation 1. Why does Target use different hurdle rates for the store and the credit cards (9% and 4%, respectively)? What process would you use to estimate these discount rates to see if they are reasonable? Target uses different hurdle rate for the store and the credit cards because they want to make as much revenue as possible. With the low credit card rate Target is able to get a lot of people to sign up for the credit card because the interest rates are extremely low. Since Target has such a low credit card rate they raise the store interest rate to make up for the difference. I would use the IRR, NPV, or the discount payback method to estimate these rates. 2. What is Target’s capital-budgeting process? Is it consistent with the company’s business and financial objectives? The Capital Expenditure Committee (CEC) stated that the capital-budgeting process of target was to add one hundred stores a year while maintaining a positive brand image. This capital budgeting method goes hand to hand with the company’s business and financial objectives. 3. Which of the five CPRs did you accept? Which project attributes did you consider as part of your decision? I first accepted the Whalen Court CPR. I chose this CPR because this location had the highest percentage of college educated people than any other project after examining exhibit 7. Since Target wants the college educated mother with children as the ideal customer, the Whalen Court project......

Words: 373 - Pages: 2

Premium Essay

Target

...Strategic Plan STR/581 Strategic Plan James Cash Penney started JCPenney, now known as JCP, 110 years ago. Penney aspired to be a lawyer for his family was not really well-off. His father was a Baptist minister and a farmer. He never had an opportunity to start in law school due to educational expenses that his family cannot afford. He worked in a local dry goods store where he became an assistant manager in Golden Rule Store. He had the chance to acquire one-third of the venture. In five years time, that was 1907, Penney acquired that of his partners (Soylent Communications, 2012). He had a vision to establish an entity that treats people the way he wants to be treated and this is what people commonly hear as “fair and square”. His very first retail business was named Golden Rule as based on his philosophy in life coming from the words of Confucius: “treat others as you want to be treated”. JCPenney was successful in his business for long years. His venture has the capacity to be an industry leader in innovation, pricing, and marketing strategy. Way before internet was invented, JCPenney offered catalogs to showcase their products. And now, they have jcp.com and their facebook page in which they do their promotions, marketing and sales (Toy, 2012). JCPenney had difficult times in keeping a close competition with Macy’s and Dillard’s Department Store especially when there were costs hikes when sales were down. The company adopted measures to deal with its problem.......

Words: 3430 - Pages: 14

Premium Essay

Target

...Target SWOT Strengths One of the strongest features about Target is that the consumer enjoys being there. There store is always clean and the way it is set up is so aesthetically pleasing it's as if each shelf were specifically shelved just for you. Even the setup of the store is maneuverable and the bright colors draw you into the store. What makes the experience even better is that there are great deals here. Things are cheap which is not so expected from a place that is so nice. Since this is still a mass merchandising place there are things from clothing to electronics. The way the aisles are set up too makes it easier to shop. Another thing that is great about Target is that they focus on design. They always have designers come in to work on a product for Target alone. This just proves that there is a great product here for a great price. These designs vary from home décor, to clothing to electronics. It's all about beautiful design at target. Weaknesses With their much strength also come some weaknesses. One of them is that they do not have as many stores as their competitor Wal-Mart. Even with Target's great advertising, it makes it difficult for the consumers to shop here when there aren't that many around. Another weakness with target is that although their prices are low, they just aren't as low as Wal-Mart's prices. AS a matter of fact, compared to Wal-Mart's prices, Target may even seem expensive. Another problem with Target is that they keep a low overhead......

Words: 455 - Pages: 2

Free Essay

Mgmt591 - Research Paper – Oranizational Change at Jcpenney

...the J.C. Penney was incorporated. It started out with 34 stores and 20 shareholders (Elizabeth, 2010). The shareholders were store managers, former partners, Mr. Penney as the president and major shareholder. JC Penney became a public traded listed company on the New York Stock Exchange in 1927 (Encyclopedia Britannica, Inc, 2012).The headquarter is located in Plano, TX, and operates in the United States and Puerto Rico, with more than 1,100 stores and counting. JCPenney merchandises include Women’s, Kid’s, Home, Shoes, Men’s Clothing, and Bed & Bath. My role is an organization consultant. I will provide new idea to JCPenney on how they can become more profitable to consumers again. To improve sales and their image, JC Penny close their catalog business, outlet stores, exit the drug store business, and closed under-performing stores (Booten, 2011). With this reformation, many people were laid off. Problem Statement JCPenny had set the top company priority as making sales for the quarter. With downsizing, JCPenney changed their image and logos. Figure 1 display the logos for JC Penney over the years. The problem that JC Penny is facing is consumer spending. The majority of their customers were middle-class American who lost their job in the Recession of 2009. With most companies, JC Penny did not change with the time. It was struck in their old ways of during business. As a major department store, you have to change along with the consumer buying power. To help with......

Words: 2504 - Pages: 11

Premium Essay

Jcpenney

...disposable spending capacity. That doesn’t mean JCP is doomed. In 2004, former CEO Alan Questrom was applauded for turning around the store which had hit on hard times. He was replaced by the soon-to-once-again-take-the-reins Myron Ullman, who managed to continue the store’s evolution, introducing more hip brands and giving shoppers a reason to turn up. Among his more interesting initiatives was to leverage capabilities that Penney’s had long developed as a catalog company into the emerging world of Internet retail. Indeed, in 2009, reporters at Businessweek admiringly observed that J.C. Penney “gets” the net, holding its own even against competitors such as Kohl’s and Target. He was widely regarded to have led a successful strategy by the time Penney’s board, seeking something new, turned to Johnson. But Kohl’s and Target, like Walmart, appeal to the growing segment of consumers at the lower end of America’s economic spectrum. If JCP continues to focus on the shrinking middle class, it’s only reasonable to assume their sales will also continue to shrink. I think Penney’s management needs to once again get back into the heads of its core consumers. They need to understand those consumers’ entire sets of experiences and make doing business with Penney’s better again. But they also need to decide where they are going to find growth again. In an hourglass economy, it’s unlikely to be their traditional middle-income consumer. Who could they appeal to and how? I’d consider......

Words: 8818 - Pages: 36

Premium Essay

Target

...UVA-F-1563 Rev. Jan. 22, 2013 TARGET CORPORATION On November 14, 2006, Doug Scovanner, CFO of Target Corporation, was preparing for the November meeting of the Capital Expenditure Committee (CEC). Scovanner was one of five executive officers who were members of the CEC (Exhibit 1). On tap for the 8:00 a.m. meeting the next morning were 10 projects representing nearly $300 million in capital-expenditure requests. With the fiscal year’s end approaching in January, there was a need to determine which projects best fit Target’s future store growth and capital-expenditure plans, with the knowledge that those plans would be shared early in 2007, with both the board and investment community. In reviewing the 10 projects coming before the committee, it was clear to Scovanner that five of the projects, representing about $200 million in requested capital, would demand the greater part of the committee’s attention and discussion time during the meeting. The CEC was keenly aware that Target had been a strong performing company in part because of its successful investment decisions and continued growth. Moreover, Target management was committed to continuing the company’s growth strategy of opening approximately 100 new stores a year. Each investment decision would have long-term implications for Target: an underperforming store would be a drag on earnings and difficult to turn around without significant investments of time and money, whereas a top-performing store would add value both......

Words: 6104 - Pages: 25

Premium Essay

History of Jc Penney and Target

...Company Analysis and Comparison: JC Penney (JCP) and Target (TGT) Becky Kennedy FINC 350 A Professor Mason February 1, 2015 JC Penney and Target are a huge presence in the retail industry. Both companies specialize in the sale of merchandise and service to consumers through retail stores and e-commerce. Target and JC Penney are companies that are part of an industry known for its competitiveness and few barriers to entry. They compete with other local, national and regional retailers for resources such as customers, employees, locations, merchandise, and other aspects of the retail business. Both companies have stores at several locations throughout the United States, with both company’s operating results depending on their ability to predict and respond to changes in trends and customer preferences by providing consumers with quality merchandise at competitive prices. Both companies face the same kinds of risks. The answers are in the way they are managed. The retail industry is risky with Target and JC Penney both struggling with issues resulting in lost revenue. Risks faced by companies in the retail industry most likely include competition, marketing, branding, employee/customer retention, supply chain management, financial management, data management and much more. Target suffered from a data breach at the end of 2013 that proved to be costly and they are still subject to investigations and private litigations costing them millions of dollars. JC Penney has......

Words: 1109 - Pages: 5

Premium Essay

History Target/Jc Penney

...Running head: HISTORY: TARGET AND J.C. PENNEY 1 History: Target and J.C. Penney Russell Canady Columbia College HISTORY: TARGET AND J.C. PENNEY 2 History: Target and J.C. Penney In 1902, Target Corporation began as the Dayton Dry Goods Company. It was George Draper Dayton’s vision to create a store that was in tuned in his belief of “a higher ground of steward ship. The Store soon became known for dependable merchandises, fair business practices and a generous spirit of giving” (Founders, 1). George Draper Dayton would stay as president of Dayton Dry Goods Company until his passing in 1938. From then on his family would grow Target Corporation in to the second largest retailer in the United States. Growing this huge nationwide retailer had some great and not so great milestones along the way. In 1911, the name Dayton Dry Goods Company changed to Dayton Company “to better reflect its wide assortment of goods and services”(Corporate, 1). 1953 brought with it new ventures of the Dayton Company. The company ventures into offering furnishings and decorations for businesses. During this time the name Target surfaces under the name Target Commercial interiors. The following year Dayton Company expands even further with a new location outside of Minneapolis into Rochester. In 1962, the company officially changes the......

Words: 562 - Pages: 3

Premium Essay

Target

...Undrea Louis Allen University Undrea Louis Allen University E-commerce Target E-commerce Target  Targets primary center is focusing on supportive shopping at discount costs, also to make Target your favored shopping destination in all channels by conveying exceptional worth, ceaseless advancement and remarkable visitor encounters by reliably satisfying our Expect More. Pay Less. ® brand guarantee Target stays concentrated on giving a one-quit shopping information for guests by passing on differentiated stock and remarkable quality. Target uses a business to consumer transaction. Which means a business selling to customers. With 40 distribution centers and 1,924 store Target operates under click-and-mortar. Target entity is a partial entity because targets merchandise can be delivered to customers. Target has been extremely successful in assigning their web assets. They have blogs, wikis, and twitter and Facebook accounts, yet there are still approaches to better themselves. On target website they have great ways in marketing themselves, however to help enhance it they can include the recommendation emphasize that permits them to recommend things based off of past obtained things. They do have the choice to get restrictive offers and advancements, yet they can likewise incorporate an e- inventory for individuals. Additionally they ought to look into offering rebates to their reliable customers. Target should offer ways in getting customer more involved in purchasing......

Words: 1552 - Pages: 7

Free Essay

Jcpenney Analysis

... Financial Analysis of Jc Penny A brief overview of the rebrand Financial Analysis of Jc Penny A brief overview of the rebrand History J.C. Penney Company, Inc has about 1,100 stores in all 50 states. J.C. Penney Company, Inc. (JCPenney) is the second largest department store in the United States behind Sears Roebuck. JCPenneys’ name came from James Cash Penney who started his first retail store in 1902 in Kemmerer, Wyoming, a small mining town when his was 26 years old called Golden Rule. Even though the local banker cautioned Penney against opening a "cash only" store, since three other previous investor attempts failed, Penney still proceeded. In Penney's 1st year, the store successfully made $28,898 in sales. By 1913, Penney changed the company’s name to J.C. Penney Company, Inc. and moved the corporate headquarters to New York City to be closer to manufacturers and suppliers. Private label brands were a major reason for the success of the company; JC Penney could determine the price and used this to increase his profit margin. Some private label examples include Belle Isle, Ramona, and Honor Brand. In 1929 the company was listed on the New York Stock Exchange. When the Great Depression hit, the company cut back its inventory and purchased goods at lower prices so it could pass the savings on to customers. The company's profits even increased during the Depression and the number of stores grew to 1,496. During World War II, Materials and...

Words: 3816 - Pages: 16

Premium Essay

Target

...Target Corporation The Dayton Company opened the doors of the first Target store in 1962. In 1965, the first Super Target store opened in Omaha, Nebraska, and in 2000, the parent company, Dayton Hudson, officially changed its name to Target Corporation. By 2005, Target had become a major retailing powerhouse with $52.6 billion in revenues from 1,397 stores in 47 states. For the Target, Wal-Mart and Costco are the two important competitors. 1、Wal-Mart operated store formats similar to Target, and most Target stores operated in trade areas where one or more Wal-Mart stores were located. Wal-Mart had become the dominant player in the retail industry. Much of Wal-Mart’s success was attributed to its “ everyday low price” pricing strategy. In addition to growing its top line, Wal-Mart had been successful in creating efficiency within the company and branching into products lines that offered higher margins that many of its commodity type of products. 2、Costco, on the other hand, attracted a customer base that overlapped closely with Target’s core customers. But Costco used a membership-fee format. It provided discount pricing for its members in exchange for membership fees. Over the previous five years, sales excluding membership fees had experienced compound growth of 10.4%, while membership fees had grown 14.6% making the fees significant growth source and highly significant to operating income in a low-profit-margin business. A precondition for effective capital......

Words: 984 - Pages: 4

Premium Essay

Target

...Wolf 1 Target is Making Gains Target is a Minneapolis-based retail chain in the United States that has over 1,700 stores with plans to open some in Canada starting in 2013 (Wohl). Target has tried to compete with Wal-mart, the largest retailer, with their “cheap chic” clothing and household items. In order to keep up with the times and grow their customer base, Target is utilizing social media, college campuses and making connections with a popular Italian designer along with adding a grocery department to their stores. Target reported a $555 million profit from their third quarter, which is up $20 million from this time last year (Talley). They are having a slow start to the Christmas season as far as toys are concerned due to Wal-mart bringing back the layaway program after five years for toys and electronics. College campuses have become one large marketing campaign for many retailers from American Eagle to Hewlett Packard to Target. College students spent $36 billion on items like clothing, computers and cell phones during the 2010-11 school year (Singer). Target is permeated 66 universities and colleges in 2011 with a private shopping event that they have created for college freshman. Target started this tradition at the University of North Carolina in 2007 and it has been a hit. Target student representatives wear red t-shirts that say “COLLEGE” punctuated by Target’s bull’s eye logo (Singer). Target sponsors a welcome dinner on the Friday of the first weekend......

Words: 1110 - Pages: 5

Premium Essay

Target

...PART I: Overview of the Corporation: The year 2012 marks Target’s 50th anniversary. In the years since the department store evolved, Target has “watched our innovations lead to retail revolutions, and our team, guests and partners build better communities where we live and work” (1). With a mission to “make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and exceptional guest experience,” (1) Target has become known as an upscale retail store that does in deed offer trendy, high quality merchandise at discount prices. They place a lot of focus on their brand promise, “Expect More, Pay Less,” in order to ensure customer satisfaction. “Expect more of everything. More great design, more choices and more designer-created items that you won’t find anywhere else. And pay less. Its as simple as that” (1). Target Corporation is guided by their commitment to great value, the community, diversity and the environment and this is held very close to their heart. In keeping with their “Expect More, Pay Less” promise, Target distinguishes itself from competitors by offering affordable yet upscale products. History: Target Corporations, formally known as the Dayton Corporation, was founded in 1902 by George Dayton. At the time of formation, the store was known for “Dependable merchandise, fair business practices and a generous spirit of giving” (1). Dayton had recognized opportunities for growth in this market and took...

Words: 7553 - Pages: 31

Premium Essay

Jcpenney Retail Strategy

...Wyoming named The Golden Rule. 110 years later this once small business manager grew a company we now know as JCPenney, which has flourished into a nationwide retail department store with over 1100 store locations throughout the United States. Throughout the years JCPenney has changed an adapted to the retail market. It wasn’t till the suburban boom of the 1950’s or the post WW2 era that JCPenney became relevant as the department store we know it as today. It was at this time that JCPenney began to run national advertisements and adopted its discounted goods strategy. During these years James Cash Penney held on to his humble beginnings and incorporated his standing on customer service and daily operations. The key position he took was on the meaning behind the namesake of his former store, The Golden Rule. In short he wanted to ensure that all who worked for him understood the principle “treat others as you wish to be treated” JCPenney, like all major department stores, has seen their store rise and fall in the retail world. At one time JCPenney was considered the pentacle of discount shopping and was consistently growing. A heavy recession in 1974 was the first major obstacle for JCPenney and from there on forward it seemed difficult for the retailer to make progress in the magnitude it had the previous years; however the retailer continued to make profits. In 1998 JCPenney introduced its online catalog service; in the beginnings JCPenney’s catalog was strictly paper and......

Words: 6212 - Pages: 25

Premium Essay

Jcp vs Target Week 7 Final

...Retail Giants: JCPenney vs. Target Kelly Greenwood October 2, 2011 Columbia College   JCPenney: History In business since April 1902, when James Cash Penney opened “The Golden Rule, a dry good and clothing store in Kemmerer, Wyoming. Although the name of the store was changed to JCPenney, in 1907, the company’s “Golden Rule” philosophy (do unto others as you would have them do unto you) remains unchanged. In 1927, JCPenney was listed on the NY Stock Exchange. Currently, JCPenney operates 1,108 department stores thoughout the U.S. and Puerto Rico, providing 112 million square feet of selling space. JCPenney offers private, exclusive and national brands. Its private brands are “developed, designed and sourced in-house, generating nearly 50 percent of the Company’s annual revenue.” (JCPenney, 2011) JCPenney has partnered with Sephora, Call It Spring™, MNG by Mango® and Modern Bride® to create a boutique style shopping experience within the JCPenney store. JCPenney “sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products and home furnishings. It also provides various services, such as styling salon, optical, portrait photography, and custom decorating.” (Yahoo Finance, 2011) It hosts one of the largest apparel and home furnishings e-commerce sites, posting revenues in excess of $1.5 billion in 2010. JCPenney posted approximately $17.8 billion in total revenues in 2010. “JCPenney has a balance of both mall-based and off-mall stores.......

Words: 5761 - Pages: 24

PS4 Games | Impersonations_ A Story of the Praxis (Dread Empire's Fall) | 4x1Flixbus Coupon/Sconto kupon rabbatt 3euro(12€) ciascuno 1h shippin 31/05/19