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JCPenney

National chain of department stores.

Headquarters: 6501 Legacy Drive
Plano, TX 75024
Employees: 159,000
CEO: Ron Johnson
Stock Symbol: JCP

JCPenney is one of America's largest retailers. The company operates over 1,100 JCPenney department stores throughout the United States and Puerto Rico.

JCPenney is the nation's largest catalog merchant of general merchandise, and its website is one of the largest apparel and home furnishings sites on the Internet. The company offers affordable merchandise aimed at a broad audience of shoppers.

Ron Johnson, formerly Sr. Vice President of Retail Operations for Apple, was named new CEO of the company on November 1, 2011.

In February, the company introduced a new pricing strategy called Fair and Square, which includes three types of prices and will eliminate the need for coupons. Everyday, regular prices, which are always great; Month-Long Values, even better prices on the things you need now; and Best Prices, JCPenney's lowest prices, which always happen on the 1st and 3rd Fridays of every month as jcpenney makes room for exciting new merchandise. These prices will be coupled with a new promotional cadence that is in sync with customers' lives. Rather than inundating the customer with a relentless series of sales, coupons, rebates and retail gimmicks, jcpenney will host 12 promotional events each year, on a monthly calendar. Each month will include even better values on the things customers are looking to buy during the month and a host of exciting products and services that are unique to the month.

The new pricing policy will affect thousands of employees responsible for changing prices on items. JCPenney will layoff 4,700 workers at stores nationwide and cut hours for other workers. The company said it will also layoff 1,000 workers at headquarters and a customer service center in Pittsburgh.

JCPenney introduced a new logo this year and plans to create branded shops within stores.

In fiscal 2011, JCPenney reported total sales of $17.26 billion, down 2.8% over the past year, and net loss for the year of $152 million. Comparable store sales increased 0.2%.

History

James Cash Penney opened the Golden Rule store in 1902 in Kemmerer, WY. The store offered quality merchandise at affordable prices. By 1909, Penney had established a headquarters office in Salt Lake City to consolidate the chain's buying and accounting operations. At the end of 1912, there were 34 Golden Rule Stores with sales exceeding $2 million. In 1913, the chain incorporated under the laws of the state of Utah as the J.C. Penney Company Inc., and the Golden Rule Store name was phased out. Growth in the company soared as it opened new stores across the country. Mr. Penney's goal has been "to serve the public, as nearly as we can, to its complete satisfaction."

Benefits

New hires can get discounts on JCPenney merchandise immediately upon hire. The discount for in-store furniture purchases and small appliances is 10% and 20% for all other merchandise.

Employees need to become eligible to receive health insurance and other coverage. Employees generally become "Benefits Eligible" on the first day of the fifth month following any consecutive four-month period during which they have worked an average of 35 hours per week in the first two consecutive months of that period and then satisfy the two month waiting period. They must average 35 hours per week on a monthly basis to remain Benefits Eligible.

Savings Plan

If you are at least 21 years of age, you may participate after completing 1,000 hours of service in a 12-consecutive-month period. Your deposits of up to 6% of your Plan compensation qualify for a share of the annual Company matching contribution to this 401(K) plan.

Pension

If you are at least 21 years of age, you will automatically be enrolled in the Pension Plan after completing 1,000 hours of service in a 12-consecutive-month period. The Company pays the full cost. Generally, your pension benefit will be based on your length of service and a percentage of your average final pay.

Updated April 6, 2012