J.C. Penny is having some large troubles. I wonder when they will go the route of Montgomery Wards? The way of the Ford dealerships in very small towns?
Over the last year, J. C. Penney rolled out a powerful new marketing campaign filled with heartstring-tugging commercials, it introduced a clothing and home décor line from Ralph Lauren, and it opened 50 stores.
But consumers are not biting — and, on Friday, J. C. Penney sharply cut its earnings forecast for the first three months of the year, by 33 percent, blaming the tough economy.
That fresh sign of distress in American retailing was reinforced by a report from the Commerce Department that consumer spending remained stagnant in February, growing at the slowest pace in more than a year because of the housing slump and a weak job market.