JCPenney 2010 Annual Report Download - page 4

To draw attention to the style in our stores, we entered into a partnership
with People StyleWatch® where items from jcpenney’s fashion assortment are
selected by People StyleWatch editors and clearly highlighted for customers
with the People StyleWatch “Must Haves” icon. We also expanded our highly
successful JCP Rewards program, to give our loyal customers even more
reasons to shop with us.
Our sales associates have received extensive training under our
CustomerFIRST program, which encourages them to meet our customers’
needs and showcase all that is new in our stores. We are very proud that our
customer service scores continue to rise. In 2010, we were named the top
department store for the third consecutive year in the annual National Retail
Federation Foundation/American Express Customers’ Choice Survey. Our
associate engagement scores have also increased, which clearly underlines
the positive experience our customers have when shopping at jcpenney. We
are also proud that jcpenney was recognized by DiversityInc. as one of the
“Top 50 Companies for Diversity®.”
We want to mirror the ease, convenience and excitement of our stores
online at jcp.com. To do this, we continued to leverage our exceptional
digital infrastructure to introduce guided navigation, mobile coupons and
a new mobile commerce site, as well as to bring ndmore® smart xtures
into more stores.
Our research shows that these changes are causing new customers to
“discover” jcpenney and they like what they nd. To capitalize on this, we
introduced a new marketing campaign for our brand, “New Look. New Day.
Who Knew!” that is bright, bold and resonates with shoppers. To reinforce
the transformation the jcpenney brand has undergone over the last few
years, we recently unveiled our new logo (see sidebar).
BUILDING ON OUR ACCOMPLISHMENTS
The next step for our Company is to build on what we have accomplished
by continuing to assert our style authority, delivering memorable customer
interactions and impactful digital experiences, as well as focusing on
driving protable growth through operational effectiveness.
To achieve this, in planning for 2011, we undertook an extensive review of our
operations in order to identify areas of the business that no longer contribute
meaningfully to our growth. The actions we are taking include completing the
DEAR J. C. PENNEY COMPANY, INC. STOCKHOLDER:
Transformation was the theme of our year, as we continued to focus on
the evolution of our Company from a traditional department store to a retail
industry leader. To bring this vision to life, in April 2010, we outlined our
Long Range Plan, designed to drive protable, top-line growth and expand
our market share. We made great strides in 2010 on these fronts.
In developing our strategies, we took into account that the moderate
customer we serve continues to have signicant budget concerns and
makes purchase decisions close to need—with value top-of-mind. Since
we are a promotional department store, this plays to our strengths and
we took a series of actions to reinforce why we should be a rst-choice
shopping destination for affordable style.
Our performance in scal 2010 shows that we are off to a solid start in
executing on our Plan. Comparable store sales rose 2.5% and online sales
increased 4.4%, contributing to $17.8 billion in total sales for the year. We
also controlled our inventory and expenses, which allowed us to protect our
margins and protability in order to deliver earnings per share of $1.59
(including $0.08 of restructuring charges), up 49% from our 2009 results.
MAKING jcpenney A STYLE DESTINATION
In 2010, we focused on making our merchandise more exciting and appealing
to new and younger customers. You will see this come alive across the pages
of this report.
Highlights include the addition of the iconic Liz Claiborne® brand, MNG by
Mango®, Call It Spring® by The ALDO Group, and our Modern Bride® bridal
concept—all exclusive to jcpenney—as well as ongoing improvement across
our power private brands, which deliver strong margins and set us apart. We
are continuing the rollout of Sephora inside jcpenney, and making the “center
core” women’s accessories area a stronger draw. We are also working to
improve our Home business—good progress has been made, particularly
in soft home categories.
TO OUR STOCKHOLDERS
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