Why is jcp changing

Usually boutique prices are higher. Unless the re-designed stores are going provide a more convenient, unique and compelling shopping experience, there does not appear to be any special reason for buyers to visit JCP stores.

It received 22 likes, and is listed below. Is it because the sale is ending? Or they can't use their coupons? Enough of what? Confusing price tags? Too much junk mail? Can anyone enlighten me because I just don't get it. The worst mistake of all, which is related to all the others, is that Ron Johnson did not listen to JCP's loyal customer base. He approached his new position of CEO from an inside-out perspective. To help insure success, you have to talk with customers, run your ideas by them, get ideas from them, and listen to what they say.

From the strategies chosen and the disappointing first-quarter results, this apparently did not happen. Perhaps he thought he was his ex-boss Steve Jobs who fooled people into thinking he could read the minds of customers before they could read their own.

Where does JCP go from here? JCP has to decide what it is and what it wants to be. Once it does, all the marketing components have to fit together. From all accounts, Ron Johnson is a very nice guy that has had a lot of success in his previous positions. Once he takes this outside-in approach, he will be in a much better position to determine where JCP needs to go and what it needs to do to become the successful company that it can be.

JCP stockholders hope he can figure it out quickly. So do I. For you. But implementing a sound strategy that can change an organization as large as JCPenney takes time, and her team had must show results now. It will be a challenge in the pandemic period to regain customer acceptance. Heavy sales promotions are planned for the pre-holiday period. JCPenney must break out in this competitive fight and give customers a reason to shop.

I am happy that 75, associates can continue to work in this very stressful environment. Their spirits should be high, and now their customer service must be exceptional to ensure that everyone returns for more. Currently I head Loeb Associates Inc. In addition to publishing the acclaimed Loeb Retail Letter, I have been, for several decades, quoted in the media on events and trends in the retail industry in top business and trade publications.

This is a BETA experience. You may opt-out by clicking here. Rajiv Lal: At that time the economy was just barely coming out of the Great Recession. Sales had been declining for a while. Most striking, if you look at J. Penney over the long term, it seems to me that they have lost their identity.

With more than 1, stores and great locations in malls across the country, it used to be the department store for middle-income families, especially for men's and women's apparel, children's ware, and home goods. It was particularly well known for home goods and children's ware. And once the family went there, they also shopped for men's and women's apparel, which accounted for almost half of sales.

They had a very strong private label program, and to their credit, previous management had worked hard to manage costs and shorten the supply chain. That was J. Penney historically.

But over time, the retailer lost its identity. It was not clear why someone would go there in the face of all the other available options, from low-end Walmart and discounters like TJ Maxx to Kohl's, Macy's, and Target. Beyond that, there are plenty of specialty stores such as The Gap and Gymboree. Lal: To fix the problem of sameness and make it appealing for customers to come into the store, he came up with the idea of unique boutiques within each J.

Penney—the store-within-a-store concept. He added services in the middle of the store where, for example, people got their nails done. He focused more on the more affluent—something that is harder to do in a bad economy, since you're spending more money to attract a new demographic that isn't showing up fast enough. Meanwhile, your old demographic is deserting you, putting you between a rock and a hard place. He also tried to deal with department stores' biggest problem, promotional pricing, or what we often call high-low pricing.

When Johnson took over J. Penney, 50 to 70 percent of all sales were at discounted prices.