Although it is true that you can’t currently buy a pair of underwear at JcPenneys for $1, you can become part owner in the struggling department store for only $0.93. A report came out earlier today that JcPenney’s stock crashed and landed below $1, landing at a landmark 7.7% intraday low. With this current level of trading, JCPenney has the distinction of the being traded at the lowest level ever for the retailer.
After the not so banner earnings report this week for the retailer, with results causing more questions than providing answers, it should really come as no surprise to most that investors are heading to higher ground like rats from a sinking ship. Simply put—JcPenney’s outlook is one of being totally bleak.
Many experts have weighed in on the subject, and many have voiced the same concern in agreement—the retailer may very well be looking at the possibility of not being able to rebound. It would appear to many that JCPenney has time after time let down their customers with such frequent management turnovers, that they have run the crowds off for good. So much so that the masses needed to sustain the retailer through its current debt situation may never be seen again.
Not only has the retailer's profits dropped, but they have also been held back on investing in critical areas such as upgrading their technology systems, hiring staff members, and continued marketing. These three areas are making it harder and harder for the retailer to compete with brick and mortars like Walmart and Target, let alone such industry leaders as Amazon.
The troubles and struggles of JCPenney quickly bring to mind those other similar retailers in very similar situations, such as Sear, Circuit City, and Radioshack, and how their sad stories ended. On initial fears of these same such retailers possibly going out of business, their stock shares took a nosedive never to return. In the end, they all eventually met or will meet, their fatal demise.
JCPenney may just be another name in a long list of retailers that never were able to bounce back and survive such a stock market plunge. As it stands, JCPenney is heading into what is some of the most crucial months for them, summer and back to school, with little to no sales to show and any hint at a profit margin in sight. Even with its current extensive research into who its customers really are and what they honestly expect to see from the retailer, it would seem JCPenney it headed down a lonely and dark road.
So, what’s the verdict—you decide.
Will JCPenney be able to pull out of its current nosedive and bounce back to life?