JCPenney 2015 Annual Report Download - page 31
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Table of Contents
Total net sales () $ 12,625
$ 12,257
Sales percent increase/(decrease)
Total net sales 3.0%
3.4%
Comparable store sales(1) 4.5%
4.4%
Sales per gross square foot(2) $ 120
$ 113
Total net sales increased $368 million in 2015 compared to 2014. The following table provides the components of the net sales increase:
Comparable store sales increase/(decrease) $ 538
Sales related to closed stores, net (175)
Other revenues and sales adjustments 5
Total net sales increase/(decrease) $ 368
As our omnichannel strategy continues to mature, it is increasingly difficult to distinguish between a store sale and an Internet sale. Because we no longer
have a clear distinction between store sales and Internet sales, we do not separately report Internet sales. Below is a list of some of our omnichannel activities:
• Stores increase Internet sales by providing customers opportunities to view, touch and/or try on physical merchandise before ordering online.
• Our website increases store sales as in-store customers have often pre-shopped online before shopping in the store, including verification of which
stores have online merchandise in stock.
• Most Internet purchases are easily returned in our stores.
• JCP Rewards can be earned and redeemed online or in stores.
• In-store customers can order from our website with the assistance of associates in our stores or they can shop our website from the JCPenney app
while inside the store.
• Customers who utilize our mobile application can receive mobile coupons to use when they check out both online or in our stores.
• Internet orders can be shipped from a dedicated jcpenney.com fulfillment center, a store, a store merchandise distribution center, a regional
warehouse, directly from vendors or any combination of the above.
• Certain categories of store inventory can be accessed and purchased by jcpenney.com customers and shipped directly to the customer's home from
the store.
• Internet orders can be shipped to stores for customer pick up.
• Order online and "pick-up in store same day" began to roll out to select markets in the second half of 2015.
Both total net sales and comparable store sales increased during 2015 as we gained market share in a highly competitive environment. Internet sales grew at a
faster rate compared to our department stores and were positively impacted by our mobile application that creates an enhanced digital experience. In
addition, we continue to move closer to a true omnichannel state with our continuation of "ship to stores" and "ship from stores" and our plans to roll out "
buy-online-pick-up-in-store same day" chainwide prior to the 2016 Back to School selling season.
For 2015, conversion, transaction counts and average unit retail increased, while the units per transaction decreased as compared to the prior year. On a
geographic basis, all regions experienced comparable store sales increases for 2015 compared
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