JCPenney’s Supply Chain: A case study

Abstract

Strengthening and revitalizing the highest traffic area in the store to become a leading destination for women’s shoes, handbags, fashion jewelry, intimate apparel and accessories, which are anchored by two very strong businesses: Sephora inside JCPenney and the Fine Jewelry store. This week, one of the oldest and largest stores to crack under the pressure of the pandemic, JCPenney, announced that it will be closing a total of 165 stores by Mar. J.C. Penney partners with organizations such as the Sustainable Apparel Coalition (SAC), apparel, footwear, and textile industry alliance to decrease the environmental and social impacts of production. These include actively participating in the Environmental Protection Agency (EPA) SmartWay program, which helps companies advance supply chain sustainability by measuring, benchmarking, and refining freight transportation efficiency.

Keywords:JCP Supply chain, case study.

JCP

JCP

 

 

Introduction

 

PenneyOpCo LLC, doing business as JCPenney and often abbreviated JCP, is an American department store chain operating 669 stores across 49 U.S. states and Puerto Rico. Departments inside JCPenney stores include Mens, Women’s, Boys, Girls, Baby, Bedding, Home, Fine Jewelry, Shoes, Lingerie, The Salon by InStyle, Sephora inside JCPenney, as well as such leased departments as Seattle’s Best Coffee, US Vision optical centers, and Lifetouch portrait studios. Most JCPenney stores were initially located in downtown areas, but as shopping malls grew in popularity during the 1960s, the chain started relocating and developing stores to anchor the malls. In recent years, JCP has opened stores in power centers, as well as stand-alone stores, sometimes adjacent to competitors. The company has been an Internet retailer since 1998 and has streamlined its catalog and distribution while undergoing renovation improvements at the store level. In May 2022, the company proclaimed that they are moving back to its Plano headquarters.

 

JCPenney participates in the EPA program

 

The J.C. Penney Co. is pursuing three major initiatives to diminish the environmental impact of its supply chain activities. These include actively participating in the Environmental Protection Agency (EPA) SmartWay program, which helps companies advance supply chain sustainability by measuring, benchmarking, and refining freight transportation efficiency. The EPA recently named J.C. Penney a 2020 SmartWay High Performer, a distinction reserved for the 5% of all SmartWay shippers that meet the most stringent emissions criteria. J.C. Penney is a finalist for the 2020 SmartWay Excellence Award acknowledging outstanding environmental performance.

 

JCPenney focuses on Oeko-Tex-certified products

J.C. Penney has focused on increasing its assortment of Oeko-Tex-certified products, meaning they have been tested and verified to be free from more than 300 harmful substances. The retailer’s new Linden Street home brand was designed with sustainable fabrics and new packaging made of biodegradable labels and recycled polyester. Diagonally to all of its private labels, J.C. Penney is also choosing packaging materials that are less resource-intensive and include recycled materials.

 

JCPenney focuses on the Sustainable Apparel Coalition (SAC)

J.C. Penney partners with organizations such as the Sustainable Apparel Coalition (SAC), apparel, footwear, and textile industry alliance to decrease the environmental and social impacts of production. The company encourages suppliers to participate in the Higg FEM and has tracked reporting since 2017. During that time, J.C. Penney’s participating suppliers’ average energy scores have enhanced 21% and are approximately 10 points higher than the current industry average.

 

JCP’s sourcing policy

 

The typical business model in the U.S. apparel industry today is “producing anywhere in the world and selling anywhere in the world”. Here is one more example: JCPenney has been importing products from across the world since 1959. The company’s sourcing organization has eight offices globally aside from its office in Dallas. The offices are in Shanghai, Hong Kong, Korea, Bangladesh, Guatemala, Pakistan, India, and Taiwan.

 

JCP’s future growth opportunities

 

 Implementing the necessary tools, processes, and technologies that enable them to serve the customer no matter how they’re shopping with us. By creating a seamless shopping experience in stores and online, customers are likely to shop and spend more at JCPenney. Strengthening and revitalizing the highest traffic area in the store to become a leading destination for women’s shoes, handbags, fashion jewelry, intimate apparel, and accessories, which are anchored by two very strong businesses: Sephora inside JCPenney and the Fine Jewelry store. Restoring their Home store to its previous sales productivity with a compelling assortment of value-driven products backed by a promotional strategy that builds customer loyalty and increases traffic.

 

 

JCPenney after pandemic

 

The company said last month that it plans to close 192 stores by February 2021 and then 50 more stores in 2022. This week, one of the oldest and largest stores to crack under the pressure of the pandemic, JCPenney, announced that it will be closing a total of 165 stores by Mar.

 

Conclusion

JCPenney is running its business as an American retail business till now in 2022. Her supply chain is characterized by her sourcing from production anywhere in the world. They are using various strategies to increase their sales. They have a focus on creating a sustainable supply chain by participating EPA program, focusing on Oeko-Tex-certified products, and focusing on Sustainable Apparel Coalition (SAC).

 

 

References:
  1. “JCPenney Department Store Locations, Directions & Hours”. stores.jcpenney.com. Retrieved February 5, 2021.
  2. Berthiaume, Dan.(2020). “J.C. Penney promotes supply chain sustainability”. https://chainstoreage.com/jc-penney-promotes-supply-chain-sustainability
  3. https://shenglufashion.com/2015/10/11/jcpenneys-global-sourcing-practices/
  4. https://en.wikipedia.org/wiki/File:JCPenney_Storefront.jpg

 

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