But there are ways for the company to turn itself around and become fashionable for investors again. Penney shares, at around $9, are down nearly 6% for the year to date. It has very high short interest, too.
First and foremost, Penney’s needs a niche. It already has the powerful brand and wide distribution channels. But it must differentiate itself from its competitors including Kohl's (KSS), Macy's (M), Target (T) and Wal-Mart (WMT). And for that it needs to do more data mining in order to attract shoppers on what they want rather than on what they need, all year round. It won't be easy.
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