Jcp Financial Crisis

Throughout the financial crisis of 2008 JCP and many other department stores continued to see declines in sales and net earnings. Although JCP was closing stores and opening others the significance of the store closures were the stores that were that were closing were primarily leased store buildings that had seen a great amount of sale decline. This tactic was used to reduce to amount of money being paid out rather than eliminate any assets. Choosing to close leased stores allowed for more money to be saved on operating cost and allowed for assets to remain on any balance sheets. This differs from Boarders, although Borders was a bookstore it is still a great example of the effect of being that being unable to close any leased stores has on a company (Wahba). Boarders was forced to file for bankruptcy protection because they were unable to sell stores that were being leased. In addition to making relevant decisions about closing leased stores, JCP made the choice to add more private labels and include mini shops within the JCP

After plenty of research it has become obvious that JCP did not only make choices that provided relief in the only the moment of need but also choices that would help in the future. By not eliminating any investments and cutting down on costs helped them to not go further into debt that to take several years to break out of. Instead, JCP were showing an increase in sales again by 2010 and continues to still show increases. This differs from Nordstrom and Kohl’s; each of these stores also seen an increase in sales in 2010 with Kohl’s seeing and increase as early as 2009. However, these two stores have begun to experience a decrease in sales in 2012 and continue to see a decline in sales. JCP has continued their growth in sales and has proved that their strategies used during the financial crisis has benefitted the company. See Appendix