1166126--4/6/2006--J_C_PENNEY_CO

related topics

{condition, economic, financial}

{competitive, industry, competition}

{system, service, information}

{personnel, key, retain}

{customer, product, revenue}

{product, market, service}

The retail industry is highly competitive, which could adversely impact the Company s sales and profitability. The Company s sales and operating results depend on consumer preferences and fashion trends. The Company s growth and profitability depend on the level of consumer confidence and spending. The Company s business depends on the ability to source merchandise in a timely and cost-effective manner. The Company s business is seasonal. The failure to attract, retain and motivate the Company s associates, including associates in key positions, could have an adverse impact on the Company s results of operations. The Company s operations are dependent on information technology systems; disruptions in those systems could have an adverse impact on its results of operations.

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1166126--4/6/2006--J_C_PENNEY_CO_INC