JC Penney vs. Target

JC Penney vs. Target

Introduction

It is noted that academics, regulators and investors focuses on the importance of comparing financial statement of the company. There are several factors that focus on the importance of comparison of financial information of the companies. From investor point of view is that investor judges the more benefit by comparing financial statements. Lending and investing activity significantly includes the comparison between different available opportunities and without such comparison logical decision cannot be made due to unavailability of information. Textbooks of financial statement analysis argue on the importance of financial statement analysis to evaluate the performance of the firm by applying various financial ratios. By effective comparability investor, academics or regulator can easily identify the performance of different business in industry and economy. Investor can opt for potential investment decision by comparing different opportunities and optimizes its benefits by investing best option available based on financial information comparison (Weygandt et al., 2009). In this study the comparison is done for two companies which are: JC Penney and Target, this includes history and overview of the business and financial comparison between both companies and evaluates the performance of the business from investor's point of view.

JC Penney

JC Penney is a retailer based in U.S offering their product via various departmental stores and through their online business. Currently, JC Penney operates in 49 different states of U.S and Puerto Rico. It is noted that at the end of fiscal year 2012 company expanded it departmental stores to total of 1,102 at different geographical locations. JC Penney has single segment business of retailing. And in retailing business they offer product under eight different categories including: men's clothing, women's clothing, men's accessories, home products, women accessories, children wears, jewelry and other services.

JC Penney also operates with same departments online and offer same products to its online customers. In addition to this JC Penney also offers different services such as optical, saloon styling, custom decorating and photography.

JC Penney procures its materials from various suppliers based globally and is more than 2,500 in numbers. To maintain the international procurement and quality JC Penney also operates a subsidiary regarding international procurement and their inspection offices are located in 15 countries in different continents (JC Penney, 2013).

History

JC Penney was founded as Golden Rule Store by James Cash Penney in 1902; the store sells clothing and dry goods in the beginning of its operations. And in 1903 Penney acquired one third shares of Rock Springs, Golden Rule Store, and in 1910 company was managing eight stores in U.S. And at the end of 1911 the company in the partnership with Penney opened eight more stores. Finally in 1913, with thirty six stores JC Penney Company was built in Utah.

JC Penney signed national brands in 1989 including Haggar, Henry Grethel, Harve Bernard, Vanity Fair, Healthtex and Palm Beach. Aand in the same year JC Penney launches its shopping channel that appear on cable. JC Penney acquired Eckerd in 1997 with 1,100 ...