Boy, it just wasn't J.C. Penney's year.
The mid-priced department store chain has decided to bring back sales events after it reported another much larger-than-expected loss in the fiscal fourth quarter on a nearly 30 percent plunge in revenue.The results mark a full year of massive quarterly losses and revenue declines that miss Wall Street estimates since Plano-based J.C. Penney Co. began a turnaround strategy that included ditching most of its coupons and sales events in favor of everyday low prices, bringing in hipper designer brands such as Betsy Johnson and remaking outdated stores.The quarterly performance puts additional pressure on CEO Ron Johnson, the former Apple store executive who was brought in about a year ago to turn the stodgy retailer that was losing money into a hip and profitable company that can compete with a Macy's or an H&M. In the year since, even once loyal customers have strayed away from the 1,100-store chain.While acknowledging that Penney made some mistakes, Johnson told investors in a conference call Wednesday that Penney will start offering regular sales in stores -- about 100 of the 600 or so the chain offered prior to the turnaround plan."Experience is making mistakes and learning from them, and I have learned a lot," Johnson said. "We worked really hard and tried many things to help the customer understand that she can shop any time on her terms. But we learned she prefers a sale. At times, she loves a coupon. And she always needs a reference price."For the fiscal year, Penney lost $985 million, or $4.49 per share, compared with a loss of $152 million, or 70 cents per share, in fiscal 2011."It's the worst performance I have ever seen by a company in one year," said Walter Loeb, an independent retail consultant.Teresa Cansell used to make the 45-mile trek from her farm near Leon, Kan., to a Penney store in Wichita about once a month. But since the changes last year, she's only been twice. And on her last, she walked out empty handed.Penney's results show that other shoppers feel the same way. During the fourth quarter that ended Feb. 2, Penney's revenue at stores opened at least a year -- a figure the retail industry uses to measure of a store's health -- dropped 31.7 percent.But customers like Ricky Rodriguez, 27, of Fort Worth offer hope for Penney."I feel like the guy section is getting more hip," Rodriguez said after buying a $25 shirt at Penney. "I've been going there every other week."Have more to add? News tip? Tell us
