With revenue expected to exceed $62 Billion in 2016, the US cosmetics industry is a retail powerhouse. While $17B of that amount generated online in 2013 suggests this brick-and-mortar retail segment is susceptible to online pressures just like most retail sectors are, the growth in the overall market segment — plus the product discoveries customers need to make — seem to ensure that foot traffic and customer time spent with new product offerings will remain a key factor driving space needs going forward.
Beleaguered retailer and mall anchor JCPenney’s CEO Myron Ullman may have stopped his company’s bleeding, but will it be mark the end of JCPenney as a brick and mortar brand?
In a recent summary at Motley Fool of JCP’s recent shareholder conference call, hints in the tea leaves about JCP’s future abound — and they don’t necessarily look great for the physical store side of the business. Andrew Marder writes:
J.C. Penney in the long run
Talking about J.C. Penney’s long-term plans, Ullman said during an earnings conference call that the retailer is “focused on refining [its] merchandizing and marketing strategies, in order to steadily grow sales and significantly improve gross margins.” This is where the rubber hits the road and investors find out if Ullman can make J.C. Penney into a new, better business.
Citing 33 stores as “underperforming”, retailer JCPenney announced the closure of nearly three dozen stores and the elimination of 2,000 jobs late on Wednesday. The wave of closures hits 21 states with Wisconsin the hardest hit, and is intended to produce $65 million in savings for the beleaguered retailer.