J.C. Penney

J.C. Penney appealed a New York state court ruling Monday that found it had interfered with a contract between Macy's and Martha Stewart Living Omnimedia by selling the celebrity's home goods, according to a filing. J.C. Penney's lawyer Martin Edel confirmed the case had been appealed but declined to comment. Retail spokesmen at each company weren't immediately available for comment. Macy's sued J.C. Penney in 2012 for breaching a deal that guaranteed exclusive rights to sell cookware, bedding and bath products from Martha Stewart Living.

A New York State Supreme Court judge ruled in favor of Macy's claim that J.C. Penney interfered with a merchandising contract with Martha Stewart Living Omnimedia when it cut a deal in 2011 to create a collection of home goods. But the judge, Jeffrey Oing, said Macy's failed to prove that Penney was liable for punitive damages since he says the actions weren't "malicious" or "immoral." Macy's is still entitled to attorney's fees and other monetary damages from Penney related to the selling of products that were designed by Martha Stewart but sold under the JCP Everyday name last year.

J.C. Penney is ripping up its marketing playbook once again, this time fashioning itself as the department store destination for Hispanics. It's a critical time for a retailer attempting a turnaround following three tumultuous years of management and agency upheaval, repeated shifts in strategy, and a marked decline in sales. In a push for growth, J.C. Penney isn't just zeroing in on the Hispanic customer — it's identified the demographic as its "North Star." The push will be on display this week with an expansive World Cup campaign that specifically addresses Latinas.

J.C. Penney's first-quarter results were better than expected as lost customers start finding their way back to the retailer. The department store's 6.2 percent sales increase, a narrower loss and a new credit line all represented progress for the injured retailer. The sales increase was the second consecutive quarterly rise for Penney after two years of steep declines. Customer traffic was up in April for the first time in 30 months. That kind of deep hole doesn't fill back up quickly. Still, Penney CEO Mike Ullman was upbeat in a call with analysts.

They were both reared in cold Midwestern towns: Steinhafel in Milwaukee and Johnson in Edina, Minn. They both worked at Target: Steinhafel joined the Minneapolis-based retailer in 1979 as a merchandising trainee, and Johnson had been the chain's vice president of merchandising until he left in 2000. They both suffered an economy that continues to impoverish retail customers.

Let's face it: Brick-and-mortar retailers have been suffering from slow economic activity and increased competition from online retailers for years, which is why so many of them are closing up their shops. So why the mixed bag title? Because while many traditional brick-and-mortar retailers are closing stores, many of their e-tail counterparts are adding physical store locations to their businesses.

Fixing sourcing is among the many challenges J.C. Penney's CEO Mike Ullman faces. Few retailers have ever decimated their sourcing department and trampled on trusted relationships established in foreign countries, especially the Far East, like J.C. Penney did under Ron Johnson. Mr. Johnson, the hapless CEO who believed he could change J.C. Penney's mantra by focusing on famous national brands, ignored the unique strength of J.C. Penney private labels. These private brands registered billions of dollars in sales and represented fashion and value to the J.C. Penney customer.

In J.C. Penney's latest annual report, gone are references to becoming "America's favorite store." Its "Fair and Square" low everyday prices and jcp.com website descriptions have also been scratched. Replacing them are a return to promotional pricing and the resurrection of its old Jcpenney.com website. But that's not all. The company has also overhauled its list of risk factors. Following Target's big data breach, J.C. Penney has joined other retailers flagging data security as a major new risk factor. The economy also continues to menace the company's turnaround efforts.

As retailers are tallying their holiday profits and setting a course for 2014, there are five ways that merchants can capitalize on their earnings and avoid pitfalls. The responsibility of retail profit margin and loses largely falls on marketers and merchandising leaders. By working together, they can improve their understanding of customer demands and product preferences.

As if the recent holiday season in the wake of the payroll tax increase and government shutdown hasn't already made 2014 a disappointment for retail, then the rest of the year may require a stiff upper lip in girding for the rest of the iceberg.