(September 16, 1875 – February 12, 1971) was an American businessman and entrepreneur who founded the JCPenney stores in 1902.[1]
J. C. Penney was born on a farm outside of Hamilton, Missouri. He was the seventh of twelve children, only six of whom lived to adulthood, born to James Cash Penney and Mary Frances (born Paxton) Penney. Penney's father was a Baptist preacher and farmer whose strict discipline included making his son pay for his own clothing once he reached eight years of age.[2]
After graduation from Hamilton High School, Penney intended to attend college with hopes of becoming a lawyer. His father's untimely death, however, forced a change in plans, and Penney was forced to work as a store clerk to help support the family. Penney's tuberculosis caused him to venture west to Longmont, Colorado.[2]
In 1898, Penney began working for a small chain of stores in the Western United States called the Golden Rule stores. In 1902, owners Guy Johnson and Thomas Callahan, impressed by his work ethic and salesmanship, offered him a one-third partnership in a new store he would open. Penney invested $2,000 and moved to Kemmerer, Wyoming, to open a store there. He participated in opening two more stores, and when Callahan and Johnson dissolved their partnership in 1907 he purchased full interest in all three stores.[3]
By 1912, there were 34 stores in the Rocky Mountain States. In 1913, he moved the company to the Kearns Building in downtown Salt Lake City, Utah. The company was incorporated under the new name, J. C. Penney Company. In 1916, he began to expand the chain east of the Mississippi River and during the 1920s, the Penney company expanded nationwide, with 120 stores in 1920, most of which were still in the west. By 1924, Penney reported income of more than $1 million annually.[4] The number of stores reached 1,400 by 1929. The large income allowed him to be heavily involved in many philanthropic causes during the 1920s. By 1921, he had a home on Belle Isle in Miami Beach, Florida. Penney and partner Ralph W. Gwinn invested heavily in Florida real estate including 120,000 acres (490 km2) in Clay County. Some of this land became Penney Farms. This was also the start of Foremost Dairy Products Inc. Penney later recruited Paul E. Reinhold to run the dairy. Most of this work was halted when the stock market crash of 1929 and the Great Depression left Penney in financial ruin.[3]
After the crash, Penney lost virtually all of his personal wealth and borrowed against his life insurance policies to help the company meet its payroll. The financial setbacks took a toll on his health, and he checked himself into the Battle Creek Sanitarium for treatment. After hearing the hymn "God Will Take Care of You", written by Civilla D. Martin, sung at a service in the hospital's chapel, he became a born-again Christian.[5]
Even after relinquishing daily operating management of the company, Penney continued his active involvement in managing the company and its stores. In 1940, during a visit to a store in Des Moines, Iowa, he trained a young Sam Walton on how to wrap packages with a minimal amount of paper and ribbon.[6] He remained chairman of the board until 1946, and after that, as honorary chairman until his death in 1971. Until the end of his life, he continued to go to his offices. Penney directed his stores to be closed on Sunday so employees could attend church.[3]
John is an active member of the Rotary Club of New York City, New York.
