JCPenney 2015 Annual Report Download - page 4

Table of Contents
Our first priority is . We plan to leverage our sourcing and private brand infrastructure to increase our production of private brands with style,
quality and value. With an established global network of sourcing offices, along with a team of in-house designers, we plan to grow private brand penetration
and increase our profitability.
Our second priority is to become a world-class  retailer. We have a rich heritage of being a catalog retailer and have much of our omnichannel
infrastructure already in place. We have three large, strategically located dot-com distribution centers with approximately five million square feet of space
with plans to effectively digitize these centers. Our objective is to create a seamless connection between our digital and brick-and-mortar operations through
initiatives such as buy-online-pick-up-in-store same day (BOPIS).
Our final strategic priority is increasing . We have approximately the same number of active customers as we did in 2011; however,
there is an increased opportunity to grow shopping frequency and the amount these customers spend on every transaction. We plan to address this
opportunity by enhancing our cross-merchandising appeal with initiatives to upgrade each store’s center core, which is the area of the store that includes
fashion and fine jewelry, handbags, footwear, sunglasses, and accessories, along with accelerating the growth of our Sephora inside JCPenney locations.

The business of selling merchandise and services is highly competitive. We are one of the largest department store and e-commerce retailers in the United
States, and we have numerous competitors, as further described in Item 1A, Risk Factors. Many factors enter into the competition for the consumer’s
patronage, including price, quality, style, service, product mix, convenience, loyalty programs and credit availability. Our annual earnings depend to a great
extent on the results of operations for the last quarter of the fiscal year, which includes the holiday season, when a significant portion of our sales and profits
are recorded.

The JCPenney®, JCP®, Liz Claiborne®, Claiborne®, Okie Dokie®, Worthington®, a.n.a®, St. John’s Bay®, The Original Arizona Jean Company®, Ambrielle®,
Decree®, Stafford®, J. Ferrar®, Xersion®, Belle + Sky™, Total Girl®, monet®, JCPenney Home®, Studio JCP Home™, Home Collection by JCPenney™, Made
for Life™, The Boutique Plus™, Stylus®, Sleep Chic®, Home Expressions® and Cooks JCPenney Home™ trademarks, as well as certain other trademarks,
have been registered, or are the subject of pending trademark applications with the United States Patent and Trademark Office and with the registries of many
foreign countries and/or are protected by common law. We consider our marks and the accompanying name recognition to be valuable to our business.

We maintain an Internet website at www.jcpenney.com and make available free of charge through this website our annual reports on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K and all related amendments to those reports, as soon as reasonably practicable after the materials are
electronically filed with or furnished to the Securities and Exchange Commission. In addition, our website provides press releases, access to webcasts of
management presentations and other materials useful in evaluating our Company.

We have a diversified supplier base, both domestic and foreign, and are not dependent to any significant degree on any single
supplier. We purchase our merchandise from approximately 2,300 domestic and foreign suppliers, many of which have done business with us for many years.
In addition to our Plano, Texas home office, we, through our purchasing subsidiary, maintained buying and quality assurance offices in
10 foreign countries as of January 30, 2016.

The Company and its consolidated subsidiaries employed approximately 105,000 full-time and part-time employees as of January 30, 2016.
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