JCPenney 2009 Annual Report Download - page 17

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RED Z NE
clearance
Door to Floor
Technology, efciency and execution make up the
Door to Floor process. It enables stores to know what
merchandise will be delivered up to 48 hours in advance,
allowing for optimal planning and preparation to move the
merchandise from the door of the truck to the selling oor.
This enables our store Associates to spend more time
taking care of our customers.
Our new clearance strategy, developed in 2009 and launched in 2010, is designed to
optimize prot while providing our customers with clear, easy to understand discount
offers throughout the year. The enterprise-wide program, which instantly communicates
strong value through bold signage, ensures clearance goods are displayed together,
organized by discount level. Most important for our customers, all clearance ticketing
reects the price they actually pay — no calculations necessary.
17
300
200
100
0
Q1 Q2 Q3 Q4
50bps
improvement
210bps
improvement
360bps
improvement
Gross Margin Improvement 2009
100bps
improvement
Inventory Flow
During 2009, our Associates focused on delivering
the right merchandise, to the right stores, at the right
time, and in the right amount. This lean inventory
strategy allowed us to achieve our goal of selling more
merchandise at regular and promotional prices, and
have less clearance than in previous years.
Gross Margin Improvement
Taken together, lean inventory levels, merchandise ow
expertise, disciplined pricing, and a strategic promotional
calendar resulted in record gross margins in 2009. We
planned it that way — and we delivered.