Does a Minimum Wage Hike Threaten Ret...

Does a Minimum Wage Hike Threaten Retailer JC Penney?

There are 13 comments on the Benzinga story from Feb 13, 2013, titled Does a Minimum Wage Hike Threaten Retailer JC Penney?. In it, Benzinga reports that:

President Obama announced plans to increase the federal minimum wage in his State of the Union address Tuesday night.

Join the discussion below, or Read more at Benzinga.

You betcha

Hampton, VA

#1 Feb 13, 2013
You bet, one nice perk as Ron thinned the staff, store management herd, firing experience, hiring in the iPad toting pimple faced naive ex high schoolers, preferable part time, who are native enough they think they have a career at JCP and it will not happen to them, he saved money, this was one of his first steps. This plan also looked like "Genius" as the staff is cheap, they fit in nicely to the new consumer base age group Ron seeks, think The Gap.

So, yes, it will hurt, Ron has mortgage the farm, betting on cheap labor, Ron has taken JCP to the bone, so the wage increase is a good and deserved kick to the family jewels for him.

The only thing left is to start closing once profitable store to cover that bump in min wage. Wasn't his last home office house cleaning done to save on salaries? If the Valentine Massacure happens, it will not help the higher wage problem. As this firing was said to be held off only to get it on this years books and not add to last years, read this as, that saved money is already committed.

One big house of cards, Ron is running out of people to fire, things to hock, borrow against. JCP is at a point any small breeze will collapsible those cards.

Anyone in their right mind still holding JCP stock?

I wished JCP reminds me of Circuit City, they fired their staff only to offer them their jobs back at the low in scale, JCP doesn't even measure up to that low and disgusting level. Some companies just deserve to go away, JCP is one of them. The sure don't deserve me shopping there. JCP, the store America loathes.
bob haller

Pittsburgh, PA

#2 Feb 14, 2013
JCP got the number one spot in stores americans hate, and the sales to go with it. the earnings no loss report the end of the month will show store sales losses leaked at around 30%. Ron has run the JCP Titanic into the iceberg, and the ship is sinking fast. Ackman is depending on the real estate JCP owns, but sears is reported to be closing stores, that will devalue JCP real estate. Ron has ordered all 400 of the dealer mini stores closed nationwide, and reports of 350 to 400 regular stores closing nationwide...

Ron is destroying penneys
You betcha

Hampton, VA

#3 Feb 14, 2013
The cost of firing people, or right sizing as Ron would say. Does this man ever speak without putting a smile on that spin.

http://bizbeatblog.dallasnews.com/2012/09/j-c...
bob haller

Pittsburgh, PA

#4 Feb 14, 2013
He still believes he is steve jobs and penneys is apple...

one thing he is getting wealthy, while destroying penneys:(
JCPonderingsDOTc om

Pasadena, CA

#5 Feb 15, 2013
You two should get a room.
bob haller

Pittsburgh, PA

#6 Feb 16, 2013
JCPonderingsDOTcom wrote:
You two should get a room.
laugh about our comments all you want there are new reports questioning wether ron johnson is competent to run penneys, so far his performance proves he is not. Lets not forget penneys had record profits in 2010 and profits were only hurt in 2011 because cotton prices rose so much. I dont believe penneys has any chance of a turn around till ron has departed. Far too many customers hate penneys and what he has done to their store........ basically destroy it.
JRB

Hampton, VA

#7 Feb 18, 2013
Yeap, the cotton prices got them, something I heard about, but did not think out how bad this would effect things, was just a bump in the road for other retailers, they rode it but, not Ron, but then again he isn't really a retailer with real life experience.

Interestingly there is a real major push to legalize hemp again in the US. The cotton industry surpressed hemp for a long time. Cotton is very hard, bad, on the soil, hemp is easier on it, you can make soap, rope, clothing, this hemp is the long strand variety, the orginial plant. it has to be long stand to make into clothing, not as smokeable. The illegal stuff is a very shorter plant, grows in more locations, useless strand fiber, from genetically modifying it, to maximize the chemical effect of the pant. Old hemp plants are more like corn in size, they really are two different things. Interesting thing to watch and jump on board with via of stocks.
REPORT ON THE REAL ABUSED

United States

#8 Feb 18, 2013
Wages need to be LIVABLE
Not Slave Wages or just barely Existing Wages.
janet

Becket, MA

#9 Feb 19, 2013
Well here I am . 4 yrs later and out of a job with them. they cut and cut your hours . So your forced to quit . They do that so they don't have to pay you unemployment. aient that pretty horrable of them. We work are butts off for them and thats the thanks we get. Go to management to she why and they tell you they have to make cuts for the good of the company. BOlonie why don't they take pay cuts and come and see what they can do to help instead of makeing the problom worst. people cannot live on those kind of hours. what are they thinking?
janet

Becket, MA

#10 Feb 19, 2013
REPORT ON THE REAL ABUSED wrote:
Wages need to be LIVABLE
Not Slave Wages or just barely Existing Wages.
amen to that.

Since: Feb 13

Westfield, IN

#11 Feb 19, 2013
From my understanding, when one cross trains to be able to work in other neighborhoods and is willing to train to be an expert, that person can get higher wages. There is a plan for advancement that adds to one's wages as the responsibilities and expertise expands, The more one cross trains, and is flexible in hours available,has a positive attitude displayed with other team members and especially with customers, the ability to move out onto the floor and work with customers instead of standing behind a cash register, signs up new accounts and does what is expected, I think it is possible to make livable wages. It doesn't happen overnight, but it is possible.

I agree that cutting hours seems to be the way team members are being forced out. I see it happening at our store. I have not been surprised to see who is getting the hours and who isn't. There are a lot of personal traits the company is looking at for what they want in their employees who are representing the company. Those who want the hours and the store really wants them to stay have been able to find hours for them in other neighborhoods to make up hours cut in their own areas. If someone is not finding that happening, one can be pretty sure he or she is one who is not meeting something in whatever the criteria must be.

I am sorry for your situation. Our own family has gone through this more then once over the past several years. The American Dream is not what it used to be. Times have changed. It's that way in most kinds of work anymore. When our country first started going from being manufacturing based to technological, this began the transition to what we are seeing now and in the future. The fittest of the fittest I guess one could say.
bob haller

Pittsburgh, PA

#12 Feb 19, 2013
Penneys was pretty fit and PROFITABLE in 2010 fact is it was record profits. hurt only by the cost of cotton in 2012. Then ron apple johnson came along and sunk the ship.

The trouble with business today? NO level of profit is enough, overload the employees with work, cut benefits, replace full timers with part timers, never be satisfied with profit. We are wittnessing JCP going thru that, sadly it can put once great companies out of business. All while overpaying CEOs and other management...

Rons ideal store would have near zero employees, machines stocking the shelves at night..

Thats what he is working for.....

no one cares about employees anymore:(
Team Member California

Dallas, TX

#13 Feb 21, 2013
This does hurt JCP and more importantly the seasoned employee of 15 years or more.This will make them get rid of more experience people and go with the cell phone crowd types. No thinking will be allowed or you'll be at risk of losing your job.Besides who wants to give their employee any benefits? So, they'll continue to perge and get rid anybody with longivity.I think I hear the doors closing to JCP for good soon. Too bad I really had liked working for them for as long as I have.

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