Marvin Ellison, incoming ceo of JCPenney Co. Inc. (Plano, Texas) says his turnaround plan for the struggling department store chain will make the company profitable by 2017.
Speaking at an annual meeting of shareholders last Friday, Ellison, currently JCPenney’s president and ceo-designee, said the company will return to profitability by adding $3.55 billion in sales and $1.2 billion in earnings before interest, taxes, depreciation and amortization by the end of 2017, according to Women’s Wear Daily.
The task won’t be easy, industry observers say. Such an increase in sales would yield $15.8 billion in revenues, an increase of 29 percent above the $12.26 billion in revenues JCPenney generated last year. Ellison’s plan hinges on $1 billion in additional sales in the core categories of men’s, women’s and children’s apparel and another $1 billion from accessories, jewelry and its Sephora in-store shops.
Ellison said particular attention and investment will be placed in omnichannel retailing, calling it “a defining strategy for the company.”