J.C. Penney Essay Example & Outline

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J.C. Penney

J. C. Penney Company Incorporation is famously known as J. C. Penney. The company is a chain of department stores in America and their stores are in Plano, Texas. The company has 1,107 stores in all the fifty states of the US and also Puerto Rico. The company previously operated a catalog business and several discount outlets. J. C. Penney stores also house certain leased departments like salons, jewelry repair, optical centers, Sephora, and portrait studios. Most of the department stores are found in suburban shopping malls. However, before 1966 most of the stores were located in the downtown area but this changed when shopping malls became more common. The company has been on the frontline for internet retailing ever since 1998.

J. C. Penney Company announced their plan to say farewell to their checkout counters and cash registers by 2014. This report was released by the CEO, Ron Johnson during the Fortune Brainstorm Tech Conference. The CEO of the chain stores has been on the headlines lately due to their announced report. The plan to eliminate cashiers, checkout counters and cash registers is yet to be enrolled fully in all the chain stores. The scheduled replacement for the cashiers, checkout counters and cash registers, are technological solutions as the company refers to them (Piccoli, 2012). They include mobile check out, WIFI networks, RFID (Radio Frequency Identification). Ron Johnson previously used to work at the Apple Retail, and he left for J. C. Penney Company in November.

The main idea of introducing the technological solution is to create a physical store that does not have a cash wrap. Having stores marketing technologies like RIFD, WiFi, and iPads are the future of retail. This may lead to some stores doing away with cash registers indefinitely. Other department stores due to their large number of clients, they may reduce the number of cash registers. This is more favorable than completely scrapping off the cash registers in large department stores. The cash registers that will remain can, therefore, be use for only large purchases. However, the main question that most customers have is: how will these technological solutions work and how effective are they compared to the use of cash registers and cashiers (Ratzan, 2004).

The main benefit of using this system is that the use of technological solutions is much cheaper compared to use of cash register and cashiers. Though the installation of these methods is initially expensive, at the long run, it is much cheaper. The only expense after the installation is the maintenance of these systems (J.C. Penney Co.). The RFID technology works in a way that it tracks the systems for merchandise and also creates self - checkout points.

The use of these modern technologies will cut on the number of workers currently employed department stores. Therefore, the company saved can be used to do other useful activities like improve customer service. The use of these modern technologies will also work faster than check out points or cash registers. Therefore, the department stores will have the capacity to remit an increase in sales.

In conclusion, this is a very brilliant idea and if implemented in the right way, will speed up the company’s success. Though there will be a loss of employment for some of the workers, the move is being executed in good faith. The company is just trying to keep up with the technological developments that are taking place all over the world. The full implementation of the digital move may take time considering the number of department stores the company owns. Also, the money that will be spent will be billions of dollars (Ratzan, 2004). However, the move is worth every penny since it is in the best interest of the company.


J.C. Penney Co. (n.d.). JCPenney [catalog]. Milwaukee,: J.C. Penney Co
Ratzan, L. (2004). Understanding information systems: What they do and why we need them. Chicago: American Library Association.
Piccoli, G. (2012). Information systems for managers: Text & cases. Hoboken, NJ: Wiley.