Since the beginning of this year, the global retail industry has suffered a considerable impact, and many enterprises have reversed their disadvantages through online opportunities. Such as a giant in the industryWalmart IncAlthough offline performance has declined a lot, it still weathered the crisis online. There are also fallen giants in the industry, such as JC. PenneyPenny.Department store.

In July, Penny, a century-old US retailer, announced that the group would cut about 1000 jobs and close 152 of its 846 stores. As the retail landscape continues to evolve, deliberate strategic choices will continue to be made to provide compelling products, attract traffic, provide compelling experiences, promote growth and build a results-oriented culture to ensure JC, it added. Penney will remain at the heart of the American community for decades to come.

Penny's first store opened in Wyoming in 1902. It has been 118 years since it opened. At its peak, it opened more than 1600 retail stores, employed more than 200000 people and had a market capitalization of $20 billion (139.7 billion yuan), making it a giant in the retail industry.

At the beginning of the 20th century, James Penney, founder of Penney Department Store, and two partners opened the first retail store, named the Golden rules Store (the predecessor of Penney Department Store). Before opening the shop, he conducted market research on the local area and fully understood the interests and needs of the residents. At the beginning of the store, with the concept of providing customers with high-quality goods, and marked the price on the goods, treating people from all walks of life equally. At that time, this behavior was very rare. With high-quality goods and good service, the store attracted a large number of customers and quickly gained a foothold in the local area.

Then Penny's began to expand, opening 1250 stores at an average rate of one store every three days between 1920 and 1930, mostly on the streets of small towns and continuing to expand to the suburbs. In order to adapt to the ever-changing suburbs, it began to add high-end goods. And has established cooperative relations with Houston and cosmetics company Sephora.

In the 1990s, it became one of the first brick-and-mortar stores to sell on the Internet. It can be said that during this period of time, the development of Penny Department Store is very smooth. However, after the change of senior executives, the business situation of the company has gone from bad to worse. It canceled the distribution of coupons and lost a large number of regular customers, resulting in a decline in sales year by year. In addition, the change of the brand is also excessive, such as the younger orientation, although the company changed the person in charge in time, but the hidden danger has always existed, so Penny Department Store has been in a situation of poor management for a long time.

According to relevant statistics, Penney Department Store has a huge debt of more than 4 billion US dollars in recent years. And the passenger flow of department stores is also decreasing year by year, there are problems that can not be ignored in terms of commodities and core customers, and this year's market environment has aggravated the difficulties faced by Penny's department store. Penny's results show that sales in fiscal 2019 were $10.7 billion, only 1/3 of those in 2001, a sharp decline. At the same time, the enterprise has been in a state of loss for nine consecutive years.

According to professional analysis, Penny's department store has been hit hard this time, and its main competitor Coles may be one of the biggest beneficiaries. The loss of the market, the latter will get most of the share. In 2020, it can be said that the storm of the traditional retail industry is a crisis for some enterprises, and for some enterprises, there are also opportunities.