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19 Sad Photos That Show Why JCPenney Is Closing Stores And Cutting Jobs

Ashley Lutz   

19 Sad Photos That Show Why JCPenney Is Closing Stores And Cutting Jobs
Strategy4 min read

JCPenney is officially in crisis mode.

The embattled retailer is cutting 2,000 jobs and closing 33 stores.

Once one of the top department stores in America, the company has struggled to turn a profit since failed CEO Ron Johnson's aggressive reinvention plan drove away more than a million of JCPenney's customers.

Even though Johnson was fired in April, his legacy continues to haunt the business.

We toured some JCPenney stores in suburban New York with Brian Sozzi, chief equities strategist at Belus Capital Advisors, and took photos that show why JCPenney is struggling to survive.

"JCPenney's rebirth is unfolding, but the huge issue is that it's moving extremely slowly, causing inefficiencies at the store that diminish the promotional and marketing initiatives being undertaken by management to rebuild customer relationships," Sozzi says.

Disorganization was a common theme at JCPenney. This clothing rack, which appears to have clothes for older women, is awkwardly placed in front of Joe Fresh, which is for younger women.

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Ashley Lutz/Business Insider

A cart of unattended hardware awkwardly sits in front of home goods:

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Ashley Lutz/Business Insider

And a piece of garbage sits on a display:

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Ashley Lutz/Business Insider

The cash register sits unattended in the shoe department, which Sozzi says could pose a security risk at the company. It's also problematic because customers who want to buy something could end up changing their minds.

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Ashley Lutz/Business Insider

The new store layouts under Ron Johnson look modern, but fail to make the most of the space, Sozzi said. "JCPenney's shops were constructed in a manner that reduces the amount of goods available for sale on the floor," Sozzi said. "This is a major structural issue."

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Ashley Lutz/Business Insider

We also see this at work with this Joe Fresh display, which takes up space that could be better utilized with racks of merchandise:

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Ashley Lutz/Business Insider

This sofa costs thousands of dollars, but because it's encased in plastic, potential customers can't even see it.

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Ashley Lutz/Business Insider

Same for this furniture:

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Ashley Lutz/Business Insider

Entire racks that should hold merchandise are completely empty.

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Ashley Lutz/Business Insider

This clearance rack contains pants and shorts for $1.97. "I've never even seen prices that low," Sozzi told us.

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Ashley Lutz/Business Insider

Some stores appeared in disrepair. This "Customer Service" sign is falling down. "How long until that falls down on a customer?" Sozzi said.

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Ashley Lutz/Business Insider

This carpet is shoddy and stained, which stands in stark contrast to the modernized shops in other sections of the store. "JCPenney is basically two companies: 500 remodeled stores and 500 un-remodeled stores (aka zombie stores), so consumers are seeing two different and confusing views of the brand," Sozzi said.

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Ashley Lutz/Business Insider

These racks of merchandise are totally empty:

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Ashley Lutz/Business Insider

This display does nothing to draw shoppers in:

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Ashley Lutz/Business Insider

Then, there's the matter of the overpriced home department. This bed set costs $2,375 - an exorbitant sum for JCPenney shoppers. That price is better-suited to an upscale store like West Elm.

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Ashley Lutz/Business Insider

"JCPenney just isn't moving items through the home store," Sozzi told us. The lack of interest in home goods is evidenced by rows and rows of merchandise on clearance:

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Ashley Lutz/Business Insider

JCPenney can't even get its logo straight. The store is full of mixed messages, evidence of the company's many facelifts in recent years.

There's the store sign:

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Ashley Lutz/Business Insider

A logo immediately upon entering the store:

jcpenney logo

Ashley Lutz/Business Insider

And this credit card sign immediately upon entering the store.

"There is no consistency, rather an array of facelifts on display in the store that reflect failed attempts to revitalize a business that operates in a super competitive, low margin arena," Sozzi says.

jcpenney

Ashley Lutz/Business Insider

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