Company initiates
personnel actions to streamline job functions and reduce
expenses
PLANO, Texas
- (March 2, 2018) - J. C. Penney
Company, Inc. (NYSE: JCP) today announced the appointment of
Joe McFarland as executive vice president and chief customer
officer, a newly-expanded role that includes responsibility for
merchandising, as well as leading all JCPenney store operations. To
ensure the positive momentum of its merchandising transformation,
Jodie Johnson has been promoted to head of merchandising for
women's, beauty and family footwear; and James Starke has been
promoted to head of merchandising for men's, children's, home and
jewelry, both reporting to McFarland. Additionally, Therace Risch,
will assume the combined titles of Chief Information Officer and
Chief Digital Officer to reflect her added responsibility for
omnichannel retail. As a result of this appointment, Mike Amend
will be leaving the Company.
"Joe, Therace, Jodie and James are
remarkable executive leaders who have demonstrated their ability to
spearhead critical tasks and drive results and efficiencies along
the way. Joe is a dedicated advocate for our associates, and knows
first-hand how successful we can be when associates are empowered
to deliver the best shopping experience possible. Jodie and James
are credited for leading the turnaround of our merchandising
strategy, and will continue to advance this effort by delivering
the best assortment of style and value offered by any retailer.
Appointing both Jodie and James to lead our merchant teams will
ensure that we push merchandising decisions closer to the division
heads and buyers for increased speed and efficiency. Furthermore,
Therace understands the power of technology, and how it can
significantly influence and enhance the way consumers shop and
ultimately, be the point of differentiation on where they choose to
buy," said Marvin R. Ellison, chairman and chief executive officer
for JCPenney. "By merging these critical retail functions under the
oversight of four proven leaders, we can better align our
operations to ensure every aspect of the business is focused on the
customer experience."
Home Office and
Store Actions
As part of ongoing efforts to manage expenses, simplify operations
and streamline workload in support of the Company's long-term
growth and profitability, approximately 130 Home Office positions
were eliminated across various departments. Additionally, JCPenney
recently restructured its group, regional, district and store
support teams. This restructure eliminated bureaucracy, reduced
support positions and reallocated store headcount to
customer-facing positions. While the restructuring enabled the vast
majority of impacted associates to assume a new role or
leadership position within the stores organization, approximately
230 positions were subsequently eliminated. The annual cost savings
generated from the home office and store reorganization are
estimated at approximately $20-$25 million.
"As the Company continues to make
progress on its strategic framework and implement new processes and
organizational efficiencies, it is imperative that we maintain a
thoughtful approach to managing expenses, while effectively
supporting the needs of the business," added Ellison. "I would like
to thank Mike Amend for his service with the Company and wish him
well in his future endeavors. Through his hard work, JCPenney has
advanced its omnichannel capabilities, laying the groundwork for
further innovation and growth."
Media
Relations:
(972) 431-3400 or jcpnews@jcp.com;
follow us at @jcpnews
Investor
Relations:
(972) 431-5500 or
jcpinvestorrelations@jcpenney.com
About
JCPenney:
J. C. Penney Company, Inc. (NYSE: JCP), one of the nation's largest
apparel and home furnishings retailers, combines an expansive
footprint of approximately 875 stores across the United States and
Puerto Rico with a powerful e-commerce site, jcp.com, to connect
with shoppers how, when and where they prefer to shop. At every
customer touchpoint, she will get her Penney's worth of a broad
assortment of products from an extensive portfolio of private,
exclusive and national brands. Powering this shopping experience is
the customer service and warrior spirit of approximately 100,000
associates across the globe, all driving toward the Company's three
strategic priorities of strengthening private brands, becoming a
world-class omnichannel retailer and increasing revenue per
customer. For additional information, please visit jcp.com.
Forward-Looking
Statements
This release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Words such as "expect" and similar expressions identify
forward-looking statements, which include, but are not limited to,
statements regarding sales, cost of goods sold, selling, general
and administrative expenses, earnings and cash flows.
Forward-looking statements are based only on the Company's current
assumptions and views of future events and financial performance.
They are subject to known and unknown risks and uncertainties, many
of which are outside of the Company's control that may cause the
Company's actual results to be materially different from planned or
expected results. Those risks and uncertainties include, but are
not limited to, general economic conditions, including inflation,
recession, unemployment levels, consumer confidence and spending
patterns, credit availability and debt levels, changes in store
traffic trends, the cost of goods, more stringent or costly payment
terms and/or the decision by a significant number of vendors not to
sell us merchandise on a timely basis or at all, trade
restrictions, the ability to monetize assets on acceptable terms,
the ability to implement our strategic plan including our
omnichannel initiatives, customer acceptance of our strategies, our
ability to attract, motivate and retain key executives and other
associates, the impact of cost reduction initiatives, our ability
to generate or maintain liquidity, implementation of new systems
and platforms, changes in tariff, freight and shipping rates,
changes in the cost of fuel and other energy and transportation
costs, disruptions and congestion at ports through which we import
goods, increases in wage and benefit costs, competition and retail
industry consolidations, interest rate fluctuations, dollar and
other currency valuations, the impact of weather conditions, risks
associated with war, an act of terrorism or pandemic, the ability
of the federal government to fund and conduct its operations, a
systems failure and/or security breach that results in the theft,
transfer or unauthorized disclosure of customer, employee or
Company information, legal and regulatory proceedings and the
Company's ability to access the debt or equity markets on favorable
terms or at all. There can be no assurances that the Company
will achieve expected results, and actual results may be materially
less than expectations. Please refer to the Company's most recent
Form 10-Q for a further discussion of risks and uncertainties.
Investors should take such risks into account and should not rely
on forward-looking statements when making investment decisions. Any
forward-looking statement made by us in this press release is based
only on information currently available to us and speaks only as of
the date on which it is made. We do not undertake to update these
forward-looking statements as of any future date.
###
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: J. C. Penney Company, Inc. via Globenewswire
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