J.C. PENNEY AT 100 BIRTHDAY GIFT OF SALES RISE VENERABLE RETAILER SHOWING SIGNS OF VIGOROUS OLD AGE.

Byline: Brent Hopkins Staff Writer

Born a century ago selling blue jeans to miners, JCPenney has weathered a difficult retail climate, holding firm as a fixture of American retail.

The chain, owned by parent J.C. Penney Co. Inc. is celebrating its 100th anniversary this week, offering big sales, commemorative gifts and feting its employees. With the struggles it's taken to hit the 100 mark, the partying is much deserved. The Plano, Texas-based firm endured the same market squeeze that drove Montgomery Ward out of business and Kmart into bankruptcy. It has emerged, gaining strong footing in its midrange niche. On Tuesday, Penney's announced that same-store sales would rise as much as 6 percent in the first quarter, evidence, according to company leaders, that its five-year turnaround plan is working.

Though not as fancy as its upscale competitors or price-conscious as Wal-Mart, by stocking the staples and strengthening customer service, the chain has managed to eke out its place in the retail scene, thriving with reduced, but strong presence nationwide.

``We're doing extremely well,'' said Steve Phillips, assistant store manager for the Glendale Galleria location. ``It's like everyone just found us all of a sudden.''

The chain's quick turnaround has been attributed almost solely to chief executive and chairman Allen Questrom, the retail whiz who shepherded Federated Department Stores through its difficulties. In a year and a half at the helm, Questrom has implemented drastic changes, centralizing authority and closing weak locations. The West Hills Outlet fell victim to this wave of cuts last April, one of two outlets and 44 stores that shuttered nationwide.

The prior problems, Phillips said, stemmed from the company's struggle to define itself, a problem Questrom has righted.

``The J.C. Penney Co. for many years has been Middle America,'' he said. ``It caters to the blue collar worker, just like it always has. In the '80s we got away from the customer, but we're starting to come back to them.''

The return to the basics has been key to the firm's return to strength, said Richard Giss, a partner of consumer business practice with Deloitte & Touche.

``They have a pretty loyal following,'' Giss said. ``It's history with them - product won't do it alone, you've got to satisfy the customer, as well.''

And you don't have to have fancy names to do that, Phillips said.

``The strength's in the basic things,'' he said. ``It's jeans and underwear that gets people in the door. The customer's no dummy - if they can get quality merchandise at good price, they'll come and see us.''

The firm's local presence has consolidated over the past few decades, according to Eric Langkusch, an assistant store manager at the Northridge Fashion Center spot, but remains popular where stores remain.

``Over the years, there was one in North Hollywood and Pasadena,'' Langkusch said. ``There's only a few in the Valley, but there's a nice store in Thousand Oaks and Santa Clarita, so our presence here in the northern part of Los Angeles and Ventura isn't as small as you'd think.''

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2 photos

Photo:

(1 -- color) JCPenney shoppers at its Northridge store look for savings Tuesday during the chain's anniversary sale bash.

(2 -- color) The 100th anniversary celebration and bargain offerings come amid reports that the JCPenney same-store sales were up in the first quarter.

John Lazar/Staff Photographer