Media spending can have an effect on generating higher awareness levels and may...may...effect sales. Heavy ad spending and high Gross Ratings Points do not guarantee a high level of sales. And, success in selling the Home Furnishings line is by no means a slam-dunk. Cheaply fabricated furnishings with a strong 50s 'retro' feel may not be successful. Just as Joe Fresh was touted as the second coming, this could also fizzle. Time will tell.
Home Department design rivals the highest end retailers in the business. I have predicted all along it will have a huge impact on the shopping experience and drawing people into the stores. Early reports are proving that out. Anyone positioned in this stock should go visit a JCP and have a look for themselves.
Credit Suisse clearly doesn't think so. Read between the lines...home store is a BOMB. Once again JCP does not have a clear idea of who they are catering to. Upscale buyers not buying, too expensive for college dorms, $10 peanut butter being offered at empty demonstration tables.
Can't wait for earnings.