Will J.C. Penney's Real Estate Be Its Savior?
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With Monday’s very public ouster of J.C. Penney Chief Executive Ron Johnson, one would think nothing but dark clouds are ahead for the troubled company. Yet there’s one area where its merchandising missteps haven’t tarnished the venerable retailer’s fortunes: its huge trove of real estate.
Most retailers like to trumpet their ability to pick successful fashion trends early or to engineer shopping experiences so exciting that shoppers are eager to flock to their stores. But when neither of those draws come through, merchants have often depended on the value of their real estate and long-term store leases to get through lean times.