JCPenney is looking to have the best expression of Nike in its stores, given the latters brand appeal. While this development is fairly positive for JCPenney, it gives Nike a prominent outlet in prime locations without significant real estate investment and operational costs. .While Nike has its own speciality stores, which the company is expanding, it still depends on major retail chains to sell its products. A store within JCPenney gives Nike prominence and should boost its sales without significant increase in costs. See Our Full Analysis For Nike Better Visibility Can Boost Volumes At Lower Cost While Nike is focusing on expanding its own stores where it can earn higher margins, a partnership with a major department store gives the company higher visibility without having to invest in expensive real estate for building its own store. Operating costs are also lower for such stores within a store, giving the company the advantages of promoting its brand and boosting volumes at a lower cost. Nike already has a strong brand appeal, which can attract customers to both retailers. Moreover, the convenience of buying footware with apparel close by in a large department store should boost volumes. Apart from selling Nike apparel, the in-store shops will also include a variety of workout accessories. Nikes athletic shoes will be located next to the new in-store shops for the convenience of customers looking to buy all products from the sportswear brand.
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De Blasio is scheduled to unveil the budget on Tuesday afternoon. New York's City Council will hold budget hearings over the coming months. It must approve de Blasio's executive budget proposal by June 30. Last year de Blasio reached a budget deal with the City Council nearly a month ahead of the deadline. Earlier on Monday, Moody's Investors Service highlighted in a report that New York City's economic output exceeds all but four U.S. states. Its status as a global financial hub, means jobs in finance, insurance, and real estate account for 10.9 percent of its employment and 29 percent of its wages, Moody's said. "It's $1 trillion tax base is larger than Los Angeles, Chicago, and San Diego combined," the firm said in a statement. "Continued economic growth remains necessary to keep pace with the city's debt service, pensions and retiree health care costs. While moderate compared to the 50 largest local governments in the U.S., New York's fixed costs are growing quickly, increasing by an average of 3.9 percent over the past five years," Moody's said. In November, de Blasio said his Citywide Savings Program (CPS), an effort to make municipal government more efficient, showed a balanced financial plan totaling $83.46 billion.
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