J.C. Penny has had a difficult year, resulting in a loss of over half its market value. The retailer is now being dropped from the S&P 500 index, and will be replaced by Allegion, a security company that services homes and businesses.
J.C. Penny’s struggles began when CEO Ron Johnson spearheaded drastic changes to the company. Johnson’s plan ultimately failed and he was fired in April of this year. J.C. Penny’s stock fell from $10.84 in 2012, to $8.87 this year. Johnson had led a strategy of nixing coupons and relying on regular, low prices, and tried to bring more popular brands to the store. Johnson hoped to bring in new, young customers, and thought the better-known brands would attract wealthier clients. However, the company just ended up losing many of its regular customers, who were not happy the changes.
Chief Executive Mike Ullman has been working to get the company back on its feet, and while some improvement has been made, especially regarding the company’s stock, its position on the S&P 500 is definitely gone. As of October 21, J.C. Penny’s stock was at $6.42, and it saw an 18% rise in November.
