From Its Beginnings To Bankruptcy, A Historical Timeline Of JCPenney

A business should not have to be judged by its bankruptcy, especially when that business is JCPenney. Unfortunately the filing wasn’t entirely unexpected. JCPenney has been trying to find its way for quite some time. Its unsustainable debt load, compounded by COVID-19, just pushed it over the edge. Whatever happens next is all up in the air. Everything these days seems all up in the air. Posted below is a corporate timeline which outlines most of the peaks and valleys, mostly peaks, of this great American retail institution.

April 14, 1902: James Cash Penney, along with two partners, open the 25X40 foot “Golden Rule Store” in the mining town of Kemmerer, Wyoming. Annual sales total $2800. The original “Mother Store” has remained in operation.

1907: James Cash Penney buys out his original partners and assume sole control of the business. The Golden Rule Store has expanded to 3 stores with annual sales of $166,313.

1912: With 34 stores, Penney annual sales reach $2 million.

1913: The company, headquartered in Salt Lake City since 1909, is incorporated as the J.C. Penney Co. In 1914, Penney relocates the headquarters to New York City in order to be located closer to the company’s main garment district.

1922: Penney operates 371 stores with annual sales of $49 million.

1927: Penney’s celebrates its 25th anniversary. The cash-only business consists of 773 stores and sales of $115 million.

1942: James Cash Penney gives a keynote address at its 40th anniversary celebration in Montana. Penney states, “We feel that the Penney company is well equipped to make a substantial contribution toward thrift and savings of the nation.” The store count reaches 1609 locations.

1952: Penney’s passes the $1 billion mark in annual sales. With 70,000 associates, the store states that it’s the largest retail organization of its kind in the world.

1962: After several years of study, the J.C. Penney Co. looks to dramatically change its business plan. It abandons its cash-only trading basis and establishes a credit operation. In enters the full-time department store business with the opening of a 152,000 square-foot location at the King of Prussia Plaza in suburban Philadelphia. With 32 departments, it is designed to be a prototype for future expansion into larger markets. Penney enters the appliance business with its Penncrest brand, manufactured by GE Hotpoint. The company joins with Goodyear and opens Auto Centers next to its full-line stores. J.C. Penney purchases the Milwaukee-based General Merchandise Company and enters the catalog mail order business. A line of large discount stores named Treasure Island is established in the Upper Midwest.

1969: Penney’s acquires the Pittsburgh-based Thrift Drug Company and enters the pharmacy business. Future discount stores are renamed Treasury and become one-stop shopping centers, from general merchandise to food departments. Penney’s enters the Belgium market and purchases a sizable interest in the retailer, Sarma, S.A. The company sells the Sarma-Penney firm in 1987.

1971: Founder James Cash Penney passes away at age 95. The company adopts the “JCPenney” moniker in its advertising. Annual sales reach $4 billion. Penney’s opens a line of 4 specialty stores in Italy. The stores, located in the Lombardy region, are sold in 1977.

1974: In addition to its shopping mall expansions, JCPenney establishes a plan to build smaller retail stores in less urban areas. JCPenney now operates 354 full-line department stores, 1289 soft goods stores, 31 Treasury discount stores, and 255 drug stores.

1977: “This is JCPenney” becomes the company slogan. Annual sales exceed $10 billion.

1980: Inflation and high interest rates severely impact JCPenney’s earnings. The company discontinues its Treasury discount store brand. 

1982: JCPenney eliminates several departments such as major appliances, paint, hardware, lawn and garden merchandise, and fabrics. The company also sells its Auto Center business. 

1983: The company introduces the Halston III line of fashion merchandise, the first collaboration between a high-end designer and a mass merchandiser. The line generates much publicity but ultimately damages the reputation of Halston’s couture business. Penney’s discontinues the line in 1988.

1988: JCPenney relocates its corporate headquarters from Manhattan’s Sixth Avenue to Plano, Texas. The company entices its 3600 corporate employees with a better “quality-of-life” environment as a benefit to the relocation.

1990: The company slogan becomes “Where Fashion Comes to Life.” A study shows that 70% of JCPenney’s customers are female.

1994: Women’s Wear Daily names JCPenney as the “Number One Best Store for Women’s Apparel” in the country. The company opens a trial store in Santiago, Chile.

1996: Penney acquires the Eckerd Drug Corporation. Eckerd operates 2699 stores in 23 states.

1998: JCPenney joins the internet shopping era with jcpenney.com. Internet sales amount to $15 million for the inaugural year. The company purchases a controlling interest in Renner SA, Brazil’s largest fashion retailer. JCPenney sells Renner in 2005.

1999: Penney’s performs below expectations at its department store and catalog business. A plan is devised to close multiple stores in order to improve cash flow.

2000: JCPenney defines its customer as “youthful in attitude though slightly older in age.” 

2002: Penney celebrates its 100th year. The company operates 1075 stores in all 50 states, including Puerto Rico and Mexico. JCPenney employs 267,000 associates. Annual sales reach $14.8 billion. The JCPenney.com website becomes the largest online retailer of apparel and home furnishings.

2004: The company sells its Eckerd Drug division and retires $1.7 billion in long-term debt. JCPenney focuses on internet sales as its best source for future growth.

2006: JCPenney develops a partnership with Sephora to open full cosmetic boutiques within its larger department stores. 

2009: After 47 years, Penney’s discontinues its popular catalog, along with its large network of Outlet Stores. JCPenney opens a Manhattan store located in the former Gimbels building on 33rd Street. The much-celebrated store is designed to compete reputation-wise with the Macy’s Herald Square flagship. The company proceeds with a new “off-mall store” format for future locations.

2012: JCPenney dramatically changes its structure. CEO Ron Johnson, who began his tenure in November 2011, tries to develop “America’s favorite store by creating a specialty department store experience.” The executive leadership understands the risks but goes forward with the plan. In February 2012, JCPenney, renamed “JCP,” institutes a “Fair Square” pricing policy that eliminates sales and promotions. The stores are reconfigured into separate shops. Popular store brands are reduced or eliminated. Sales decline 24%. The company admits that the new sales policies and “merchandise misjudgments” have led to a disastrous business decision. Macy’s files a lawsuit against Penney’s for illegally obtaining a sales agreement with the Martha Stewart brand. JCPenney eventually loses the court battle. The company stock price becomes extremely volatile and its credit rating is severely downgraded. Johnson is removed as CEO in April 2013 and former CEO Myron E. Ullman III is reinstated. Previous pricing policies and merchandise offerings are slowly reinstated. 

2016: JCPenney reports $4.8 billion of longterm highly leveraged debt. High inventory levels continue to impact the company’s bottom line. JCPenney reenters the major appliance business.

2019: Jill Soltau, named CEO in October 2018, helps develop a new concept store for JCPenney. The Hurst, Texas store, near the Plano headquarters, is outfitted with a fitness studio, children’s play areas, and other amenities. The company discontinues its major appliances department after only 3 years. Financial issues, including massive debt, continue to hang dark clouds over the firm. 

2020: JCPenney stock falls below $1 a share and is delisted from the New York Stock Exchange. The company reports an accumulated $3.7 deft load on February 1. Fears of Coronavirus create anxiety within the corporate headquarters, in addition to shoppers. JCPenney officially closes all stores on April 1 and furloughs many of its employees. In early May, Sephora threatens to terminate its agreement and pull out of JCPenney stores.

May 15, 2020: JCPenney files for Chapter 11 bankruptcy protection. With 846 stores and 85,000 employees, the department store plans hundreds of permanent store closures as a means to reduce debt and avoid liquidation. Though the company has been struggling for the past several years, JCPenney cites COVID-19 as a large reason for Friday’s bankruptcy filing.