INTRODUCTION
In this segment, the retailer J.C. Penney will be analyzed against the department store retail industry, with particular emphasis placed upon their competitors, Macy’s and Kohl’s. The major components to be discussed will include the general external environment (i.e. demographics, economics, politics, legal requirements, technologies and global expansion), the industry environment, the competitive environment, the driving forces and the key factors for success within the industry. In terms of the general external environment, the retail industry is a multi-trillion dollar business in the United States alone and maintains operations primarily due to consumer spending. Such purchases rely upon the disposable income of consumers and, as a result, the success of the retail industry is directly correlated to the economic status of the country. Due to the recent economic recession in the United States in 2008, customer confidence is not as high as it once was and, as a result, consumers are more price-sensitive in their retail purchases than they once were. As a result, retailers must be incredibly careful in their selection of product mix, their associated retail prices and the promotions they offer.
Aside from price and pricing structure, another major component to consider in the retail industry is the domestic and global increase in the use of technology. Such shift in the availability and reliance upon technology has driven retail consumers to be more time sensitive but has also allowed them a greater power as buyers because finding the same or similar products online is simple, quick and sometimes even more cost-effective than purchasing items in a retail store. Furthermore, the reliance upon technology has also lead to necessary changes in customer service and point-of-sales procedures in physical retail stores because customers are expecting, if not