On Wednesday it was reported that shares in JCPenney plummeted below the $1.00 mark. This officially means that the buzzards are circling the once iconic department store chain. Not only is the breaking of the one-dollar mark painful, it is also very alarming for several reasons.
Data shows that rival retail stocks such as Macy’s, Amazon, and Nordstrom’s rallied and achieved a comeback on the day after Christmas. This bounce back was further proof that consumers spent in a very aggressive fashion this holiday season, just not at JCPenney’s it would appear. Although this holiday buying season has been termed a good old fashioned spending boom, it would seem that JCPenney was the odd duck left out.
Another contributing factor is that since the new CEO took over in early October, JCPenney’s stock has been in what some would call a free fall—to the tune of over 40%. The new CEO is well respected on Wall Street and is a highly accomplished retail executive, so one has to wonder what is really behind the decline.
Many suggest that it is that investors and stockholders are simply losing confidence in a once well-loved brand. Adding insult to injury is the fact it took years of missteps and various executives bad calls to get the company to this point—it obviously didn’t happen overnight.
Although JCPenney has been contacted in regards to their thoughts on the plummeting stock price of their company, so far no one has reported any attempt to reach out from the company.
What is really worrisome is that JCPenney may very well be a harbinger of dire times to come. Many more retail stores may look up and find those very same buzzards circling them overhead.