Britannica Money (2024)

JCPenney is an iconic American retail company and key anchor store in shopping malls across the United States. JCPenney traces its origins back to April 14, 1902, when founder James Cash Penney and his partners opened the Golden Rule dry goods store in Kemmerer, Wyoming. Over the next two years, they expanded to other Wyoming frontier towns. In 1907, Penney bought out his original partners and began a journey that would shape the retail landscape for decades to come.

After filing for bankruptcy in 2020, the company was taken over by two of the nation’s largest property managers: Simon Property Group (SPG) and Brookfield Asset Management (BAM).

1913–1929: Incorporation and expansion

When it was incorporated on January 17, 1913, as the J. C. Penney Stores Company, the enterprise had already opened 34 stores in the American West. The following year, the company moved its headquarters to New York City, setting the stage for its national expansion. By 1927, J.C. Penney Co. went public, trading on the New York Stock Exchange. By 1929, the number of stores had grown to 1,392.

1930–1962: Conservative approach, credit cards, and catalogs

James Cash Penney retired in 1946, but retained the title of honorary chair. His conservative influence persisted with policies such as strict prohibitions on employee tobacco and liquor use. In 1958, the company shifted its traditional cash-and-carry approach to selling on credit through store credit cards, broadening its merchandise range to compete with national department stores like Sears and Montgomery Ward. The foray into mail-order sales occurred in 1962 when JCPenney acquired the General Merchandise Co., launching the first Penney Catalog the following year.

1962–1996: International expansion and diversification

The late 1960s marked JCPenney’s international expansion with the acquisition of Sarma, SA, a Belgian retail chain. The company entered the Italian retail market in 1971, opening stores under the name JCPenney, SpA. The company would sell these stores in 1977.

In 1969, the company began what would be a multi-decade foray into the retail pharmacy business with the purchase of Pittsburgh-based Thrift Drug. Its pharmacy expansion continued and, after its 1996 acquisition of Eckerd Drug Corp. (which operated more than 1,700 stores across 23 states), the company operated 2,800 retail pharmacies.

In 1988, the headquarters and its 3,600 corporate employees moved from New York City to Plano, Texas, near Dallas. Overseas operations extended to Mexico and Chile in 1995, although the international merchandising division closed in 2003.

2000–2020: Declining sales and bankruptcy

As it entered the 21st century, JCPenney faced stagnant and declining sales. Discount stores such as Target and Walmart continued to compete for JCPenney’s customers, a trend that would accelerate during and after the 2008 financial crisis. During this period, several strategic initiatives were launched in an attempt to revitalize the business. Most would ultimately fail.

  • Partnerships and brand introductions. In 2006, JCPenney forged a collaboration with Sephora, resulting in the establishment of Sephora outlets within select JCPenney stores. Sephora did not renew its contract in 2020, however, and has pulled out of JCPenney. In 2008, the company introduced the American Living brand, a venture developed by fashion designer Ralph Lauren. This partnership would only last until 2012.
  • Product line diversification. JCPenney expanded its offerings to include Linden Street home furnishings, as well as various clothing lines for juniors and young men.
  • Shift in sales channels. Recognizing the growing importance of online purchases at its retail website, the company made a strategic decision to discontinue catalog sales. Also, in 2004, the company sold its fleet of Eckerd Drug stores.

These efforts aimed not only to address declining sales, but also to position JCPenney competitively in the evolving retail landscape. However, sales continued to lag, and its online presence failed to capture market share from its competitors.

One particular failure was the move in 2012 to so-called “Fair Square” pricing that eliminated discounts and promotions. After a precipitous sales decline, the company returned to its former pricing model, but only after then-CEO Ron Johnson was replaced by former CEO Myron Ullman.

The COVID-19 pandemic, however, would prove to be the final nail. With virtually all of its stores closed amid a nationwide lockdown, in May 2020, JCPenney’s holding company filed for bankruptcy protection. It was a hard landing for this once-prominent retail giant that, at its height in 1973, operated more than 2,000 stores.

By the time of the bankruptcy, the store count had fallen to 846.

2020 and beyond: Is revitalization possible?

During bankruptcy, JCPenney closed more than 200 stores and restructured its debt. In late 2020, Simon Property Group (SPG) and Brookfield Asset Management (BAM)—two of the nation’s largest property owners—purchased the company for $800 million.

At the time of the bankruptcy, JCPenney held $4 billion in debt.

The purchase was, in part, a strategic move by these two entities, considering the number of malls and shopping centers they own and operate across the U.S. If JCPenney were to close, hundreds of malls would lose an anchor retailer.

Marc Rosen, who previously held executive positions at Levi Strauss & Co. (LEVI) and Walmart (WMT), was hired as CEO in 2021. He began the process of remodeling stores—with plans to spend more than $1 billion by the end of 2025—in hopes of keeping the company’s stores and e-commerce site afloat.

The Editors of Encyclopaedia BritannicaThis article was most recently revised and updated by Nancy Ashburn.

Britannica Money (2024)


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Generally, $100,000 per year is a good goal for most people.

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The standard recommendation is to have enough to cover three to six months' worth of basic expenses. As a goal, that number can be steep. In reality, you can benefit from saving any amount.

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What is the oldest money? ›

The first metal coins date back to the 7th century BCE in Lydia (modern Turkey) and China. In China, metal coins were made of bronze and shaped like farming tools. In Lydia, coins were made of an alloy of gold and silver called electrum. Lydian staters were the first coins to be officially issued by a government body.

Is credit real money? ›

Key Takeaways. Credit money is the creation of monetary value through the establishment of future claims, obligations, or debts. These claims or debts can be transferred to other parties in exchange for the value embodied in these claims.

What is the high power money? ›

High-powered money is the sum of commercial bank reserves and currency (notes and coins) held by the Public. High-powered money is the base for the expansion of Bank deposits and creation of money supply. The supply of money varies directly with changes in the monetary.

Do I really need money? ›

While most experts recommend maintaining three to six months' worth of basic living expenses in an emergency fund, the amount of cash you really need depends on a few factors, including your current life and financial situation, your risk tolerance and your goals.

Is money all you need in life? ›

Money is important for affording the basic things we need to survive, but research shows that focusing too much on money can lead to more stress, isolate us from people we care about, and even cause depression.

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How do you know if you're struggling financially? ›

The Big 7: These Signs Indicate Serious Financial Dysfunction
  • You have too much debt relative to your income.
  • You don't know how much debt you owe.
  • You pay only the minimum on your credit cards.
  • Your credit cards are maxed out.
  • You've been turned down for a new loan or credit account.
  • You don't have emergency savings.
Dec 26, 2023

How do I know if I'm doing OK financially? ›

Financial stability can be defined differently for each person, but there are some common indicators of being financially secure. Signs of financial stability include following a budget, living below your means, saving money consistently, prioritizing debt repayment, and paying bills on time.

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Try these eight ways to stop stressing about money:
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  7. Focus on your financial goals.
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How do you tell if you can afford something? ›

So if you're wondering how to know if you can afford something—start with a budget. Get all your income in there and every monthly expense. You'll know what's left so you'll clearly see if you have the money to make a purchase.


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