LIZ Liz Claiborne, Inc.

Macy's Inc. (M) sees opportunity for itself and other retailers from the disruptions that are expected as J.C. Penney Co. (JCP) revamps operations.

J.C. Penney is undergoing a stem-to-stern transformation as it goes from building its business around sales and promotions to a simple strategy with largely set prices.

The complications that can occur, from losing customers, the most dire, to not getting the new strategy in place on time, would open the door for Macy's and others to pick up considerable business.

"I think it's going to be a tough year (for Penney), so I do see opportunity short-term...long-term as well," Macy's Chief Financial Officer Karen Hoguet said at an industry conference Wednesday. "I think there is opportunity for Macy's and others as well to have a decent year as a result of all the change and dislocation."

Hoguet called Penney's "a good team of people," but said Macy's strategy is much different than that laid out by Penney's Chief Executive Ron Johnson.

"I think he says localization is overrated, omnichannel was not a part of their presentation, and I don't believe there was much conversation about the selling for experience vis-a-vis sales associates," Hoguet said.

Macy's localization strategy involves tailoring merchandise to area tastes and omnichannel is a way to integrate selling across all platforms, from stores to online.

A Penney's spokeswoman declined to comment on Hoguet's comments. Johnson, who helmed Apple Inc.'s (AAPL) retail arm until joining Penney last year, has called the transformation he plans for the retailer "an extraordinary opportunity."

Penney's approach involves everyday low prices, monthly sales and clearance sales. There will also be a "Main Street," in stores and as many at 100 stores within stores offering merchandise ranging from Martha Stewart home goods to Liz Claiborne Inc. (LIZ) apparel. Penney plans to reach its goal to transform its more than 1,000 stores by 2015.

But fellow department stores including Kohl's Corp. (KSS) and Dillard's Inc. (DDS), as well as specialty retailers, such as sellers of jeans and tops, will be seeking to capitalize on any missteps by Penney.

In lowering Penney's corporate credit rating one step further into junk territory Wednesday, Standard & Poor's Ratings Services Co.'s said it expects the retailer's new pricing and merchandise strategy to cause some near-term disruptions to operations.

S&P said it could consider lowering the rating if there are greater-than-expected issues with implementing the company's new strategy or a meaningful erosion of consumer spending due to a worsening economy.

-By Karen Talley, Dow Jones Newswires; 212-416-2196; karen.talley@dowjones.com

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