'Judgment Day' Is Rapidly Approaching For JCPenney

JC Penney woman

JCPenney is going through a major restructuring under new CEO Ron Johnson, but it’s about to finally come face-to-face with its biggest short-term challenges.

The second half of 2012 will be JCPenney’s “judgment day,” according to a report fromĀ UBS. Here’s why:

  • JCPenney will have had a fair amount of time to educate consumers about its new, controversial pricing strategy
  • Much of its new, differentiated merchandise will be cycled in by then
  • The reimaging process for its physical stores (reorganized into “shopin-shops” around the strongest brands it has to offer) will be well on its way

The retailer warned in the first quarter that the revamp may lead to temporary sales declines.

NOW SEE: Ron Johnson Reveals How He’s Going To Make JCPenney Look More Like Apple >

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