Premium Essay

Jcpenny vs. Kohl

In: Business and Management

Submitted By lplouis
Words 1853
Pages 8
While some of the department stores covered by this Survey beat our same-store sales estimates for the first half of 2011, some lagged behind. (For details, see the “Same-Store Sales of Selected Department Stores and Discounters” table on the previous page.) Most of the moderate-price department stores such as J.C. Penney and Kohl’s fell behind expectations. On the other hand, discounters such as Dollar Tree Stores and Dollar General reported relatively strong gains in the first and second quarters of 2011. The better department stores such as Saks and Nordstrom have been able to attract upper-income households with limited sales promotions, by offering convenience and a superior shopping experience. These stores are sticking to their core strategies: they are actively striving to come up with innovative marketing programs and customer services, and selling exclusive designer products. (Adams Media Research, 2012) [pic] J.C. Penney and Kohl’s both posted modest sales gains in the first and second quarters. While middle-income consumers are showing reasonable caution in their spending behavior, they’re willing to go slightly over budget when the merchandise is right. Overall, discounters exceeded our same-store sales expectations for the first half of 2011, reflecting stable consumer demand for everyday necessities. Among the big box discounters, we believe Target benefited from an expanded assortment of food and allied categories. We also think the company was more effective in conveying its value message to consumers through its “REDcard Rewards” loyalty initiative. By comparison, discounters such as Big Lots and Kmart Corp. (a division of Sears Holdings Corp.) saw a negative year-over-year growth rate in its same-store sales. The decline for Kmart was largely a result of weak demand in the consumer electronics, pharmacy, and drug categories,

Similar Documents