I think this captures two important considerations here--JCP has been limping along for years w/o a sustained coherent direct. They are a mature business with limited geographic or product line room to grow. In the distant past, the mature business and the loyal customer base would have made them a "widows and orphans" stock and the company would have had incentives to maintain the status quo and as long they didn't get too stodgy and conservative, they would have done ok. But now, there are expectations that profits and stock prices keep going up even if the core business really can't support it.wnetmacman wrote: ↑May 22nd, 2020, 2:51 pmLet me give you guys my real take on all of this:
JCPenney has had a massive identity crisis for 20-30 years. They don't know what to sell to who at what price. They've had issues keeping CEO's that were focused on more than just leaving their mark on the business. To me, JCP can be a lot of things, especially in apparel and home. They cannot be a full line retailer, and they cannot be everywhere.
Amazon is interested in 2 aspects of JCP: the insanely large mall stores and their apparel business. Amazon needs space now. JCP would give them 840+ outlets plus a tested distribution system AND the apparel they so badly lack in. It would also give immediate retail to a company whose only local outlets are overpriced Whole Paycheck Foods, which didn't help the bottom line. I suspect the holdup to the closing list is that Amazon wants all or none.
I don't know how seriously to take the Amazon rumors, but JCP has a ton of stores and they've gotten out of the small town locations and the worst of the metro area malls, so 29% could include some decent real estate that could be of interest to Amazon. They're opening a super market within walking distance of me, which also will be within a few blocks of Whole Foods, Trader Joe's and Safeway---should be interesting. What makes Amazon attractive online (having everything) will be more difficult in a brick and mortar and even with gimmicks like no-human interaction as in their c-stores, it is a gamble. One other thing to consider---they have been looking at malls for awhile---several dead malls have been totally or partially torn down and replaced by their fulfillment centers, and others are under consideration for this purpose.