Shares of department store chain JC Penney fell as much as 22 per cent yesterday after it reported its sharpest drop in quarterly sales since unveiling a transformation plan that has failed to impress customers.

Many long-time shoppers have deserted JC Penney in the 13 months since chief executive Ron Johnson announced his plan to replace popular sales events with “everyday low prices” and roll out dozens of branded boutiques for hip brands.

The 31.7 per cent decline in comparable sales during the important winter holiday quarter, reported late in the day, prompted at least three brokerages to cut their price targets on the stock, which has halved in in the past year.

JC Penney’s neighbour in many shopping centres, Sears, has benefited as dissatisfied shoppers chose to shop at its stores. – (Reuters)