The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1928-06-08
$500 Grows in25 Years
To $l5O,OOO,OOO.OO

In this age of chain store develop
ment the growth of the j. c. Penney
Company from one small unit in 1902
doing a total gross volume of $28,898 !
in its first year to an organization of
S92 stores at the close of 1927 doing
a business of $151 1851, 1865 in that year
J furnished a typical example of how
chain store systems may expand.
In April 1902, ]. C. Penney opened
the Golden Rule Store at Kemmerer,
WyO., with a cash investment of $500.
An additional $1,000 was obtained
through a note but inasmuch as this
not was paid out Of the earnings of
the store the original capital invest
ment in cash may be taken as $500.
In the first year this cash capital
was turned over 81 times. In 1927 it
was turned over 100000 times. This
is the largest growth in turnover of
invested capital in an equal period in
the history of retail merchandising in
this country.
In the early years of its existence
the present j. G. Penney company
grew at a comparatively slow rate.
1t was not until 1916 or IA years after
its start and after the name had been
changed from the Golden Rule Com
pany to the j. C. Penney Company
that any j. c. Penney stores made their
appearance even as far east as the
western central states.
In 1904 there were two stores in
operation.
The years 19O5-19O6 and 1907 saw
no increase in the number of store
units.
The gross volume of sales, however,
had expanded from $94,165 in the
year in which the third store was
opened to $166,313 at the end of the
sixth year that the company was in
operation.
= At the end of 1912 that business
Y for that year with "a stores in oper-
\ alton, had grown to $2,050,641. In
> the tenth year of operation the orig.
Y inal $500 in cash invested by Mr.. Pen.
\ ney was turned over 10000 times.
No outside capital had been solicit
ed and expansion of store units was
financed entirely out of the earnings
It of the stores.
ic From the start of 1913 to the enc
of 1918 the store units increased from
"a to 1877
J. In 1918 the ]. G. Penney Company
v started its eastward growth. The 49,
n stores operating in 1918 did gros.
N volume for that year of $21, 1895, 1OS.
lie In 1919 following the let down il
expansion of stores in the previou
e year, 100 new store units were added
E. The 297 stores in operation at tn
re close of 1920 did a gross volume fo
Is that year of $42,S46,C08.
e. IN 1921 several new units were add
n ed with a gross volume of bushes
n of $46,641 1928.
ce At the end of 1922 there were 81
ed stores doing, a gross volume of bus
tx mes for that year of $49,035, 729.
he This was 20 years after the star
of Of the first store opened by Mr.. Per
ed ney and the turnover of the origins
IS invested capital was $4,000 times.
o. In the five years following froi
he 1922 to the close of 1927 the stor
in units grew from 371 to 1872, doing
pc gross volume of business for the yea
IL 1927 of $751; ,957,865.
ny The largest growth in any one yea
en- in these five came in 1927 when Ia
ge stores were opened. During 1927 tn
of Jones stores in the Pacific northwes
.st were acquired by J. c. Penney Con
pany the stores totaling Sc. The Go
of den Rue Mercantile Co. operatin
20 with headquarters at Ogden, Utah
in was also acquired but the 20 store
on purchased did not come under IL
ST. direct n management of the Penney c.
He until Jenuary 1, 1928. Expansion tn
M year is ct the rate established in 49,
ng with store 1000 opening in Beloi
Kansas in April of this year. Stol
r units no to 1925 are already schedu
# ed for opening this year.
# In 1927 during which year gros
2, sales were in excess of $751; ,0O, OC
e the total sales volume represented
turnover equivalent to 100000 tim,
times tie original cash investment
cir of $500.
lrr In all expansion programs the in
as tial policy of the company to finan,
mn expansion out of the earnings, wit
out the enlistment of outside capita
l has been adhered to.
The average volume Of busine
It's done by j. G. Penney Co. stores
1927 was at the rate of $4,000.
In its early development the cor
r%y=-1r--1--r-~----