JC Penny Wants Federal Bailout For Consumers [We’re Not Making Enough Profit]
The CEO of JC Penny is now lobbying for a federal bailout plan to boost consumer spending and come to the rescue of the retail industry. While US retail spending fell by a record 2.8% in October from September, JC Penny’s 3rd Q profits fell 53%. Additionally, they disclosed a 22% decline in the value of their pension plan, due to the stock market collapse. But yet, the company saw a profit of $0.90 to $1.05 a share, although the return on their stock is at –60.74% for YTD and they are still planning on building 17 new stores.
On Friday, Mike Ullman, Chief Exec at JCP, called for government action to boost consumer spending since they are not making money like they use to. Can anyone say GREED?
Seriously, you are still making a profit, investors are still making a profit, and you plan to build 17 new stores in this economy, and you think you are suffering? Talk about a lazy, greedy company and I thought AIG was bad….. Maybe it’s just time for JC Penny’s to go like other retail outlets. I personally haven’t stepped in a JC Penny’s in about 20 years as there are other retail outlets that have a better variety of goods, higher quality goods with lower prices… and I’m not talking about WalMart.
JCP seems to think their 2008 Christmas Campaign, “Red Box Gifts” will convince consumers that JCP offers products similar to those found at higher-end stores at much better prices. Who needs a “Luggage Locator” for $19.99? Or a “Pet’s View Camera” for $39.99? Or maybe a Coca-Cola Vending Machine for $149.99? Yea, I’m gonna run right out and buy those things that are just so important to existing in a recession……. This just goes to prove that JC Penny has gone from the good old days of selling items that were useful and needed in the home, to dependent upon sales of goods that are good for absolutely NOTHING.
But on “useful” gifts in the “Red Box Gifts” section, lets look at the Cuisinart 4-cup Coffeemaker. Their page advertises that it was originally $39.99 but now is $29.99, and is only available online. So remember that JCP’s promotion is to offer products similar to those found at higher-end stores at much better prices as a campaign, lets look around, shall we? Amazon: $29.95 (Or if you want it in pink $23.99); Bed Bath & Beyond: $29.99; Kohl’s: $39.99 (but is on sale at $33.99); Macy’s: $29.99.
So let’s look at another item. The KitchenAid® 5-qt. Artisan Stand Mixer with an original price of $379.99 but is now, $299.99 but this one is available in stores. Home Depot: $299.99; ACE Hardware: $269.99 (with free shipping in the US); Bloomingdales’: $299.99; Macy’s: $299.99; Target: $299.99
So, how is JCP any cheaper? Can you say MARKETING SCHEME boys and girls?
So if we are bailing out all these banks, all these financial institutions, bailing out automakers, wanting to bailout retail outlets now, and planning on another stimulus package, why are we still using money? Seriously, sounds like to me that we might as well get rid of the dollar, everyone works for handouts, and everyone gets everything for free since taxes are going to be so high in the long run, no one makes any money. And yes, I am being sarcastic, but it seems like that is what everyone wants.
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