The Golden Rule: The Rise of J.C. Penney

James Cash Penney began his illustrious retail journey by partnering with two other men to open a dry goods and clothing store in Kemmerer, Wyoming. Named "The Golden Rule," the store emphasized ethical business practices and customer service. By 1912, this single store had multiplied into 34 Golden Rule stores. The following year marked a significant transformation as the business was incorporated into J.C. Penney when James Cash Penney took majority ownership, though William McManus remained a partner. Despite the incorporation, the stores retained the Golden Rule name for another six years.

Between 1915 and 1917, the company's growth was phenomenal, expanding from 83 to 175 stores. This rapid expansion was fueled by an innovative strategy: store managers were incentivized to open new locations by allowing them to retain one quarter of the profits from their successful stores. This model not only encouraged growth but also attracted capable and entrepreneurial managers.

In 1917, Penney stepped down as company president, passing operational responsibilities to the new president, Earl Corder Sams, and assuming the role of chairman of the board. By this time, the chain boasted 177 stores with annual sales of approximately $14 million. Under Sams' leadership, the company continued its impressive growth trajectory, with sales reaching $210 million by 1929.

J.C. Penney's simple yet effective business model and commitment to customer service and ethical practices propelled it to become the second-largest retailer in the United States by 1970. Despite the challenges faced by many retailers in the digital age, the original store in Kemmerer, Wyoming, remains operational, serving as a testament to the enduring legacy of James Cash Penney’s vision and entrepreneurial spirit. This historical continuity highlights the foundational principles that have sustained the company's success for over a century.
The Golden Rule: The Rise of J.C. Penney