How the Market was Fooled — A JC Penney Deep Dive

In the early 2010s, JC Penney was trying to reinvent itself in the retail clothing industry. With the widespread growth of internet access, online shopping quickly gained popularity as physical stores and malls struggled to adapt and match. However, even among its peers that were placed under similar circumstances, JC Penney was already seen “as a poor performer that was losing ground to competitors like Macy’s and Kohl’s” (Denning). Bill Ackman, the principal stockholder of the company, in an attempt to revive JC Penney, staunchly advocated for the replacement of Mike…