What to Watch With J.C. Penney Company, Inc. (JCP)

More recently, J.C. Penney emailed a $10 “gift” to customers, essentially a coupon encouraging them to visit its stores.

Of course, the company’s adjustments to its marketing model aren’t necessarily problems, as it could eventually find the right balance between promotional events and store redesign, but it’s important for investors to follow these developments. They offer the best insights into management’s thoughts on how the rebranding attempt is progressing.

3. Rural stores
While the revamp at the primary 700 J.C. Penney stores remains in question, investors still have no idea what Johnson is planning on doing with the 400 stores that didn’t make the rebranding cut. Those locations tend to be smaller, with footprints under 60,000 square feet, and in rural areas. Johnson recently said, “We’re doing a lot to drastically improve the product and presentation for those customers that shop those 400 stores, and we’re going to do it by November 1.”

But J.C. Penney’s rural stores face stiffer competition from online channels and Wal-Mart Stores, Inc. (NYSE:WMT), which has come to dominate the rural retail landscape. The revamp in all of J.C. Penney’s stores will answer the question of whether it has a merchandise problem or a real estate problem. Half of its stores are in suburban malls, a struggling retail format, and many see the rural locations as a liability rather than an asset.

The article What to Watch With J.C. Penney originally appeared on Fool.com and is written by Jeremy Bowman.

Fool contributor Jeremy Bowman has no position in any stocks mentioned, and neither does The Motley Fool.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.