JC Penney slashed its forecast today. The retailer blamed the economic slowdown for its poor sales performance.

“J.C. Penney counts half of American families as its customers, and they are feeling macroeconomic pressures from many areas … [and] the sharp decline in sales is reflective of these trends. While the economic stimulus package may provide some temporary benefit, we expect the continuation of a difficult environment over the course of 2008.”

[Wall Street Journal]

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  1. Lazlo Nibble says:

    J.C. Penney counts half of American families as its customers…

    J.C. Penney must use a highly-customized non-dictionary definition of “customer”, “family”, “American”, “half” or “count”. Otherwise this phrase makes absolutely no sense.

  2. lincolnparadox says:

    They’re probably going off of people who have JC Penney credit cards. Once you sign up, you always have the line of credit.

    I love Penney’s, but mostly for sales. If you buy a year ahead for the seasons, you’ll always find good deals.

  3. Jeff_McAwes0me says:

    I would think that an economic downturn would help JC Penny. When I think ‘inferior good’ I think ‘JC Penny.’

  4. philipbarrett2003 says:

    Actually, according to their statistics 1 in every 2 US residents visits a JC Penney store once a year. Hard to believe I know, but maybe they’re counting the people who walk through on their way into the mall?

    Looking at their employee churn, maybe 1 out of every 2 has worked for them in the past year too?

  5. ConsumerAdvocacy1010 says:

    I buy very few things from JCPenny. Their quality has gone down, and their prices up.

    And their new line…American Living….mostly (95%) made in India. And they have the nerve to put a bald eagle and American Flag on the product as its logo (I know it’s legal…but that doesn’t make it any less scummy).

    JCPenny executives can go DIAF.

  6. RobinB says:

    I worked in their credit dept years ago–I don’t recommend using a
    JCP credit card. The company who services them is terrible. Buy from
    JCP but use a different card.

  7. CitizenOutKast says:

    Hmm…let’s see…people work, have a buttload of money taken out in taxes, have to pay high property taxes (depending on where you live), have to pay sales tax and all the other taxes. And people are surprised that customers aren’t spending as much?

    Real economic stimulus: Let people keep more of the money they make. They keep more, they spend more, businesses make more.

    Democrats really are against business. Except they attack businesses by taking the money out of the consumers’ hands.

  8. AlphaWolf says:

    Democrats or Republicans, either way the cost of commodities is going up and people feel it in the wallet.

    JC Penney has some really low quality stuff at “normal” pricing. Of course that could not be the reason their executives are feeling the pinch?