Analysts who are getting out into J.C. Penney stores are finding some positive signs.
Oppenheimer & Co. issued a note Monday saying Plano, Texas-based Penney’s recent promotions are showing “evidence of success.”
“We are increasingly optimistic that the more price promotional stance that J.C. Penney is now assuming will allow the chain to make the most of a challenging holiday selling season and position it well to re-accelerate its aggressive turnaround strategy in 2013,” the note said.
Markdowns were aggressive. Clearance inventory was selling better, and some racks were cleared out. Inventory was light in home; inventory has been moved out to make way for new brands coming in early 2013.