American businessman James Cash Penney (1875 - 1971), owner of the JC Penney chain of retail stores, ... [+] points to a picture of his first store, Golden Rule, in Kemmerer, Wyoming, during the celebration of his 86th birthday, New York, New York, September 15, 1961. (Photo by Pictorial Parade/Getty Images)

Whenever I covered JCPenney JCP in my analyst days, I spoke about the companys humble beginnings in Kemmerer, Wyoming. Thats where the founder, James Cash Penney, opened his first store called The Golden Rule in 1902.

The company was later renamed the JCPenney Company, but for many years management continued to hand out little colored balls with the name Golden Rule (Do unto others as you would have them do unto you) engraved on it.

When it was still known as The Golden Rule Company, the company flourished because each store manager seeded the next store in the growing chain and helped the new fledgling store get off to a strong start. Of course, the store manager who supervised the new store shared in the profits of that enterprise and was motivated to keep that chain expansion going.

That original 8,000-square-foot store is located about 100 miles northwest of Salt Lake City and was known as the mother store of the chain. Initially, the store was a dry goods store that carried notions, fabrics, and some ladies fashion. But, the world has moved on from those days, and the town, with its 4,000 residents, will see this store be auctioned off. According to Business Insider, an auction will be conducted on September 14 and 15.

It is interesting to note that headquarters was moved to Salt Lake City in 1909 because it was closer to railroads and banks. In 1913, stores were consolidated under the JCPenney name, and in 1914, the company opened its headquarters in New York City. In 1992, the company moved to Plano, Texas.

Now, the 118-year-old company is fighting for its life. It declared bankruptcy on May 15. Management is shrinking the size of the company and trying to cobble together an agreement with financial institutions. More than 80,000 associates are awaiting a court order that will determine whether the company will survive and they will still have jobs. What a change from 2011 when the company had its best year: sales hit $17.6 billion and it employed 156,000 associates (almost twice the number facing an uncertain future today).

JCPenneys history is a glorious one I respect. Some leaders were great, others were destructive. But, is the department store model that once served JCPenney so well now an albatross that will no longer be the driving force of retailing? I think the coronavirus pandemic has changed the industry a lot, and we will shop differently in the future. I look to Jill Soltau, JCPenneys CEO, to drive the enterprise forward successfully.I hope that the sale of the first store is not the beginning of the end.

Continued here:

JCPenney Selling Its Original Store Is A Tough Break With The Past - Forbes