JCPenney 2010 Annual Report Download - page 5

“IT’S A NEW DAY AT jcpenney thanks to the steps we have taken to be a
style destination, to develop sophisticated technology and tools to manage our
business, and to be in an exceptionally strong financial position. We are now
focused on taking our TRANSFORMATION to the next level by introducing new
initiatives in support of our vision TO BE AMERICA’S SHOPPING DESTINATION
for discovering great styles at compelling prices.” Mike Ullman
wind-down of our legacy catalog business and exiting the outlet business,
closing certain underperforming store locations and streamlining our customer
call centers and custom decorating businesses. Expected to deliver $25 million
to $30 million in cost savings in 2012, these steps are part of an ongoing
process to ensure we are increasing sales productivity and tightly managing
costs and expenses.
We remain vigilant in our efforts to best manage inationary cost increases that
our industry is facing. The Company is in a strong position, with more than 50
years of relationships with major overseas suppliers, which allows us to source
merchandise more cost effectively. This enables us to avoid taking signicant
pricing actions, which could jeopardize our standing as the low-cost leader
among department stores—a key position given the ongoing economic
challenges that our customers face.
Taken together, these actions are allowing us to focus on our highest potential
initiatives, including: capitalizing on the success of our merchandising strategies;
selected new store growth; continued renovations, including additional rollouts
of Sephora inside jcpenney; the introduction of new size and markdown
optimization tools in order to better control inventory; and the upcoming
launches of our new Growth Brands Division—The Foundry Big & Tall Supply Co.™,
Gifting Grace™ and CLAD™
.
Each of these marks an opportunity for us to deliver protable sales
growth. As we pursue them, we are fortunate to have a strong, experienced
management team that is focused on driving continuous improvement in our
business. We also have an accomplished, dedicated Board of Directors, and we
welcome its newest members, William Ackman, founder and CEO of Pershing
Square Capital Management, and Steven Roth, chairman of the board of
Vornado Realty Trust. They are each distinguished businessmen
and among our largest shareholders.
Finally, we could not achieve what we do without our hard-working associates
who focus every day on making jcpenney America’s shopping destination for
discovering great styles at compelling prices and continue to deliver on our
goal of increasing the value of your investment.
Thank you for your continued support.
Myron E. (Mike) Ullman, III
Chairman and Chief Executive Ofcer
April 2011
A LEGEND. A LEGACY. AN EVOLUTION.
INTRODUCING THE NEW LOOK OF
jcpenney
Symbolizing our transformation to become America’s
favorite shopping destination, jcpenney unveiled a
new, modern evolution of our enduring brand in
February 2011. Endorsed by thousands of customers
during extensive research, the fresh, bold design
was the most meaningful update to our Company’s
logo in 40 years.
It signies the Company’s progress of infusing
great style into our assortments, delivering
world-class customer service, and introducing
innovative technologies that have made jcpenney
a retail leader in the digital age.
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