J.C. Penney Will Offer More Sales, Diminish Role of Martha Stewart Brand

Retail

Published: January 29, 2013 8:08 am

Last Updated: April 28, 2020 12:13 am

A dispute between Martha Stewart Living Omnimedia Inc. (NYSE: MSO) and Macy’s Inc. (NYSE: M) over a licensing deal between Stewart and J.C. Penney Co. Inc. (NYSE: JCP) is set to go to court next month. In the meantime, J.C. Penney’s rollout of its Martha Stewart-branded goods will be crippled by the store’s decision to leave her name off a wide variety of products in its home decor and housewares lines.

According to an exclusive report in the New York Post, sources say that items such as bedding, linens, and kitchenware will be “largely free of the Martha Stewart label.” The dispute with Macy’s severely crimps CEO Ron Johnson’s original plan to boost J.C. Penney’s home retail business.

Instead, J.C. Penney is reverting to its long-established practice of offering goods at sale prices. Johnson had hoped to move the company away from promotional sales, but the store’s customers did not run toward the idea. J.C. Penney shares have lost more than 50% of their value since the store gave up on the promotional pricing.

The combined loss of the Martha Stewart branding, for which J.C. Penney paid $200 million in a 10-year deal, and the return to promotional pricing do not augur well for a turnaround in sales or profits.

Shares of Penney’s stock are up 0.2% in premarket trading this morning at $19.26 in a 52-week range of $15.69 to $43.18.

The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%¹ today. Checking accounts are even worse.

But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

¹https://www.fdic.gov/national-rates-and-rate-caps