Midterm Paper - Expect Great Things Every Day Matters are...

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“Expect Great Things”, “Every Day Matters” are the two company slogans, which emulate two of the largest retailers in the world today; constantly finding themselves on either current or past Fortune 500 lists. JC Penney and Kohl’s strive to be the best of the best in comparison to their competition by focusing on delivering the perfect product to their consumers. Kohl’s and JC Penney are some of the biggest names in the retail industry. With Kohl’s being founded back in 1946 initially as a traditional grocery store, known as Kohl’s Food Stores. In 1962, Maxwell Kohl began his first department store, right here in Brookfield, Wisconsin. His focus was to create a store that offered products ranging from higher ended items to the discounted ones. Over the years, Kohl’s expanded from the Wisconsin suburb to parts of the Midwest and in 1992 Kohl’s became public, which began the substantial growth of the company throughout all parts of the US with locations in every state, excluding Hawaii. JC Penney began back in 1902 by James Cash Penney after working for Thomas Callahan and Guy Johnson for a dry goods store, known as Golden Rule and by 1912 it had 34 stores in the Rocky Mountain States. JC Penney took off instantly and expanded to 1,600 stores by 1941 and continued that expansion for years. Today we find both retail sectors struggling to stay ahead of the other due to the struggling economy over the past years with mid-tier retailers being pulled down. In January of 2014, JC Penney announced the closing of 33 stores that were not producing positive results, with the ramifications of the layoff of 2,000 of its employees. CEO of JCP explains, “As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly.” As well as with Kohl’s and them not producing as much as they wanted to be when looking back at the 2013 year. According to Daily Finance News, “the full year 1
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2 earnings are to come in at $4.03 per share, compared to its previous forecast of being between $4.08 and $4.23 per share.” JCP and Kohl’s look to sell similar products within the retail industry, relating to clothing, footwear, furniture, jewelry, beauty products, electronics and house ware items to their customers. Kohl’s looks to attract the two-income family, whom have children at home, they don’t have a lot of time and are looking for value in their products. Their customers are majority female, between the ages of 35 to 54 years old with an income of $50,000-$75,000, living primarily in the Midwest. According to Business Week, JCP’s customers have a lower income and are older in comparison to Kohl’s. JC Penney’s customers are primarily older than 55 years old with only 20% under the age if 35 years, 13 % of customers have an income higher than $100,000 with the majority of its customers making less than $35,000; resulting in customers being more price sensitive to JCP’s products.
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  • Spring '14
  • ErinMullens
  • JC Penney, J. C. Penney, J. C. Penney Historic District, Kohl, Maxwell Kohl

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