JCPenney is going through a major restructuring under new CEO Ron Johnson, but it's about to finally come face-to-face with its biggest short-term challenges.
The second half of 2012 will be JCPenney's "judgment day," according to a report from UBS. Here's why:
- JCPenney will have had a fair amount of time to educate consumers about its new, controversial pricing strategy
- Much of its new, differentiated merchandise will be cycled in by then
- The reimaging process for its physical stores (reorganized into "shopin-shops" around the strongest brands it has to offer) will be well on its way
The retailer warned in the first quarter that the revamp may lead to temporary sales declines.
