J.C. Penney

Early Life and Humble Beginnings

Everybody knows JCPenney as one of the largest department store chains in the US. However, the brand JCPenney was the brainchild of famous entrepreneur James Cash Penney. Before hitting it big as an entrepreneur and businessman, J.C. Penney came from humble beginnings.

He was born in 1875 to a devout Baptist family. His childhood days were spent on his father’s farm and in local stores as a clerk where he probably developed his knowledge of the retail industry. It was here that J.C. Penney began to gain valuable insight into how the retail industry worked.

Initial Business Ventures

After Penney relocated to Colorado in 1897, he began working with Guy Johnson and T.M. Callahan, who were local dry-good merchants. They set up a new store in Kemmerer, Wyoming in 1902. Penney acquired one-third of the business by investing $500 and a promissory note of $1,500.

Founding The Golden Rule and Expansion

Penney’s uncanny vision to create a chain of department stores that were customer-centric led him to open his first store called The Golden Rule in Wyoming in 1902. It didn’t take long for Penney to buy out his partners and scale up his business across the U.S. By 1912, he had already opened 34 stores and rebranded his store’s name to J.C. Penney Company.

Innovative Profit-Sharing Strategy

Each time he opened a new store, Penney would offer a profit-sharing plan to its manager. This innovative idea fostered a sense of ownership among the employees and was crucial to the company’s expansion. He expanded further in the next eight years and opened 120 stores across the country.

Going Public and Further Expansion

J.C. Penney took his company public in 1927 but retained his strategy of sharing profits. The company even doubled down on this and offered stocks to its managers, and eventually, all employees were part of its profit-sharing plans.

Philanthropy and Community Involvement

For several years, J.C. Penney Co. was the go-to destination for shoppers across the United States due to its broad range of affordable merchandise. He didn’t let his success get to his head and he contributed to various notable causes such as education, health care, and civil rights.

Personal Life and Setbacks

Although he was experiencing tremendous growth in his professional life, his personal life took a hit when he lost his first wife to pneumonia in 1910. He remarried twice and had five children in total. He experienced a nervous breakdown when the stock market crashed in 1929, thereby wiping out his fortune.

Recovery and Later Years

He recovered with the help of Christian Science and regained control of his company. He retired as Chairman in 1946 but continued to remain active as Honorary Chairman until his death in 1971.