Every Year JC Penney, one of the most important buyer of apparel products from Bangladesh, buys around the US $160 to the US $180 million worth of readymade garment from Bangladesh through to direct and indirect strategic sourcing. Only in 2017, the company’s direct liaison office of Bangladesh exported around USD $50 million except the exports of Max, Hong Kong office and Opex, India.
JC Penney, an American Buyer, started its journey in 1902, which now operates roughly 875 departmental stores today with 106000 family members and now its market revenue is the US $12.547 (2016) billion.
In this FY 2018 JCP is expecting to close eight of its department stores in the U.S. market, a spokesman told to the CNBC. The announcement has created some unwanted anxiety to the JC Penney’s suppliers and vendors in Bangladesh. However, this closing will not create any impact in any exporter country around the world. Because the store reduction is a strategic decision about the nonperforming or non-profitable store which maintenance, inventory cost is huge but it is very inefficient for the mother company. “Yes! Total buy will reduce a little bit,” said a senior officer of Bangladesh who wanted to be anonymous.
Actually, it is not an uncertain conclusion rather than it is a part of the company’s ongoing plan to right-size JCP’s store speedy as more sales move online. JC Penney said it would also close one of its fulfillment centers in Wisconsin this summer, eliminating more than 600 jobs as a result.
The officer in Bangladesh Liaison office also shared some important suggestions for Bangladesh’s suppliers to prepare themselves to continue a sustainable business with JCP. Recently, the company is focusing design-based suppliers and gradually dropping their own design. In the near future, which supplier will not be able to generate fashion design that will not be a competitor anymore for the JC Penny’s strategic sourcing. The company also focuses on IRP (Individual Inspection Ability).
The eight-store closures are estimated to result in about 480 job cuts, the company said, and operations at those locations should be completely wound down by May.
The officer in Bangladesh Liaison office also shared some important suggestions for Bangladesh’s suppliers to prepare themselves to continue a sustainable business with JCP. Recently, the company is focusing design-based suppliers and gradually dropping their own design. In the near future, which supplier will not be able to generate fashion design that will not be a competitor anymore for the JC Penny’s strategic sourcing. The company also focuses on IRP (Individual Inspection Ability).
