JCPenney looks to its “go-forward phase” with Mobile

JCPenney looks to its “go-forward phase” for long-term profitable growth. Shares had surged 16.25 percent on Monday. JCPenney reported first quarter same store sales which jumped to 6.2 percent, exceeding estimates; second consecutive quarter of growth. The company has been working on its Android and iPhone mobile phone initiatives.

JCPenney’s “go-forward phase” into second quarter aims for long-term profitable growth. The company announced it will continue its strategic efforts into the second quarter to re-merchandise many of its store areas, revamp consumer messaging and drive key promotional events which contributed to sales results.

The retailer announced strategic initiatives of its turnaround earlier this year in which its remaining inventory in 33 affected stores will be sold over the next several months, with final closings expected to be complete by early May. The closings will result in the elimination of approximately 2,000 positions.

JCPenney is continuing its plans to open a new store location later this year at the Gateway II development in Brooklyn, N.Y. "As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly," said Myron E. (Mike) Ullman, III, chief executive officer of JCPenney. "While it's always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position JCPenney for future success."

According to the U.S. Commerce Department, April retail sales were up by only 0.1 percent compared with the previous month. There are still strong indicators that consumer consumption just isn’t fleshing out quite yet. Much was to blame on the bad weather. There is a trend across all retailers as also harbouring around real weakness.