JCPenney

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Founded in 1902, the first J.C. Penney store was located in Kemmerer, Wyoming. The building is shown here circa 2004.

Photos and Prints Division, Library of Congress, Washington, D.C. (2017706640)

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).

When it was incorporated on January 17, 1913, as 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. In 1929, shares of J.C. Penney began trading on the New York Stock Exchange. That same year, its store count reached 1,392.

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.

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 decades-long foray into retail pharmacy 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 in 23 states), the company operated 2,800 retail pharmacies.

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

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 2007–08 financial crisis. During this period, several strategic initiatives were launched in an attempt to revitalize the business. Most would ultimately fail.

These efforts aimed not only to address declining sales, but also to position JCPenney competitively in the evolving retail landscape. But 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 CEO Ron Johnson was replaced by former CEO Myron Ullman.

The COVID-19 pandemic, however, proved 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 Chapter 11 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.

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, given the number of malls and shopping centers they own and operate across the U.S. A closure would have left hundreds of malls without 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.