J.C. Penney Tries to Re-Invent Itself

Posted by in Retail


J.C. Penney’s roller coaster ride of three P's–prices, policies and procedures—can serve as a valuable lesson to sales managers and sales VP's nationwide. The giant retailer plans to shake things up through 2015.

 

For starters, the retail giant will no longer have coupons. It also changed its pricing strategy and re-aligned its return policy. There’s even a new spokesperson: Ellen DeGeneres. (Even if she's not a favorite with some conservative groups.)

 

A closer look at J.C. Penney’s (JCP) pricing strategy reveals a trend toward simplification. Monthly deals and “best” prices on select products, initially intended to simplify shopping strategies, have been replaced by everyday prices and clearance merchandise. “Clearance Fridays” put many items on lowest markdown and are designed to make room for new products. “We’re really focused on making it simple for the customer,” said Kate Coultas, a JCP spokeswoman.

 

While coupons are history, JCP cardmembers are now automatically enrolled in the JCP rewards program. Non-cardmembers can register up to three credit or debit cards, including a JCP card, when they join the program. Members who spend $100 per month on qualifying purchases get a $10 reward certificate they can use the following month. Gold card members can earn up to two rewards for spending $200 per month, and platinum card members can earn up to three rewards for spending $300 per month.

 

JCP has also revamped its internal store layouts. Aisles are wider and racks now have fewer items for easier browsing. The retailer has also added what it calls its “Shops"—branded areas in the store for boosting sales on such items as MNG by Mango, Levi’s (for men and women), Arizona (for juniors and young men), jeans by Buffalo, Liz Claiborne, Izod and jcp (for men and women), even Sephora is under consideration. “Sephora has been discussed and is a possibility,” said Denise Gordon, Valley View store leader.

 

Some specialty areas like housewares, lingerie, shoes and children’s apparel won’t fall under the Shops concept. JCP hopes its Shops will create less of a department-store feel and more of a stylish collection of shops, each tailored to the unique tastes and preferences of individual shoppers. JCP expects to have 40 Shops in stores nationwide by the end of 2013 and 100 by the close of 2015.

 

JCP will also be reinstating its popular Salon Shop promotion, which offers free haircuts for kids in kindergarten through sixth grade each Sunday. The Salon Shop had previously offerred free cuts to breast cancer survivors in honor of Breast Cancer Awareness Month. JCP hopes free haircuts and new internal geography will turn things around.

 

The retailer could certainly use some upbeat news. Forbes recently reported that sales dropped 21.3 percent in the first six months of 2012. Ron Johnson, chief executive officer of JCP, is thinking positive. Johnson says, “It’s really hard to transform things. It isn’t always fun. But that’s what we’re going to do. I’ve seen this movie and I’m really excited to see how this one plays out.”

 

As a retail manager or VP,  how these changes affect JCP sales can serve as a guide to any promotional efforts and store revamping you may be considering.

 

Photo courtesy of Wikipedia.org

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  • Nancy R
    Nancy R
    While they got rid of loyal employees, left them to fight they're way through unemployment, some loosing their homes, paying their hard work and loyalty with uncertainty. JCP made their decisions, they chose to do all this treating their employees like mere numbers, let's see how it will turn out for them, which I hope will be as bad as it was  and it is for those employees, or, should I say ex-employees.
  • Catherine S
    Catherine S
    The clothes seem they are of less quality.  I agree with other comments below, Need to bring in more brands. I spent enough at Penneys I think I have been paying there light bill at my local JC's for years.  LOL  Wasn't impressed with their Black Friday deals.  Would like to see more Plus sizes for younger ages.  And definitely improve standing in line times at registers and offer carts.
  • C.C. P
    C.C. P
    I agree w/ the woman requesting shopping carts. Also agree w/ those who say Not to remove too many register stands and create longer lines.  I like the new concept, presentation upgrades and marketing.  The JCP moniker is reflective of the upgrade and an improvement b/c the name Penny's over the years became synonomous w/ the bottom of the barrel retailers.  There are many talented individuals from higher quality retail environments that have joined the ranks of JCP in key management positions (ie Nick Wooster from Neimans, in charge of men's fashion direction).  These type of individuals will help source fashionable merchandise and translate the trend at value price points.  I believe the revamping is possible but it will take a couple years of patience.
  • Alex Kecskes
    Alex Kecskes
    My goodness. It certainly looks like JCP should be reading these comments if they expect a robust Black Friday.  Thanks for all your comments.   And Donna, I hope JCP offers you a nice job.
  • pam d.
    pam d.
    I like the direction that jcp is going. The prices are lower,and the catalog is fresher looking. Some of the clothes are not made well. I love the fact that IZOD is being considered. I have to shop at elder-Beerman to get that brand (Frankfort, ky). I'm glad that this store is taking this risk to give the customers what they want.
  • Jacqueline H
    Jacqueline H
    The store does look more appealing than before!
  • Geraldine Q
    Geraldine Q
    I am not impressed with the (new) Penneys stores now, I used to shop there a couple times a week and always bought clothing, housewares, jewelry, etc, but now I don't like the smaller selections in clothing, etc. I see you have discontinued my favorite brands like Gloria Vanderbilt, St John's Bay and others. I hope you decide to go back to all the brand names you used to have and do the sales like you used to. I now look elsewhere for my brands and bargins.
  • Shabae T
    Shabae T
    I have been a jcp shopper for years. I could always find something for my kids but now since the change I can not hardly find anything for them. I don't like that they stopped the coupons. Coupons keep your business going. Even if you send out one a month that's better than nothing.
  • Kimberly  S
    Kimberly  S
    I do not like the new concept, especially the store layout.  It is difficult to find what you are looking for and fewer registers are a real problem.  I can't imagine what the lines will be like during the holidays.  I won't know because I won't be shopping at JCP this year.  The catalog process is not convenient at all.  Yes, you can go to any register but first you have to find one of the few available.  Then, you have to wait for the clerk to walk back to the old catalog area to get your package and return to the register to complete the transaction.  I order from catalog to expedite my shopping.  Why change a process that was convenient and efficient and turn it into something ridiculous?  No more catalog purchases for me either.  That means none of my dollars will be going to JCP any more!
  • Donna M
    Donna M
    I think I would be very happy if they would call me for a position!
  • Phoenix
    Phoenix
    It might also be good if they put shopping carts into their stores since they have lots of big item merchandise. I've always bought my drapes, bedroom stuff, and kitchen items from them, have always asked why they don't have carts to carry bulky or cumbersome purchase, but I have yet to get a satisfactory answer.
  • Sharon P
    Sharon P
    JCP used to be one of my favorite stores. Now I use it as a walk through to get to the mall. The store has less merchandise and seems to have higher prices. It is definitely not the same JCP  and I will not be   shopping there like I use to. If something catches my while passing through, then I'll stop and look, otherwise I'm shopping for another department store. GOOD LUCK JCP.
  • Charlene S
    Charlene S
    I must say I personally DO NOT like the "new" changes and revamping of what used to be my most favorite place to shop. Your prices are higher and no coupons or deals. I never go in your store anymore. I now go to Kohls, not my favorite but there is not not many choices in my area. I also loved St. Johns Bay and it's gone. I truly am so sad because if my husband or I needed anything, it was just a given we were going to JC Pennys were we knew we were getting good quality and affordable prices but that has totally changed.
  • Denise p
    Denise p
    Dont shop at jcp anymore because of the no coupons. Have been back once but not worth my time. My other family members feel the same. I was in there 3 times a week sometimes I have 3 young children now I shop else where. Thanks
  • Sharon w
    Sharon w
    If it's working for them, fine!  It isn't working for me; and therefore, I use my option of taking my shopping dollars elsewhere.saw
  • Kathleen M
    Kathleen M
    Went to your North Conway Store yesterday because you people felt Berlin, NH  no longer needed a store.  I think this was a big mistake.  People shopped there all the time..  I have to say that the store could have been moved to a better location because eliminating the clutter in that small space would have been very hard.  I think the stores should have signs indicating where that product is.  Sometimes there is no time to browse.  As far as your new pricing, I think it's great.  The store doesn't look so cluttery with all the sale racks hanging around.
  • Ann G
    Ann G
    As a recent shopper at JCP, and a retail store manager, I do not agree simpler is better. There is no customer service, and the merchandising leaves something to be desired. I love the "Liz Claiborne " line. And yes it is very affordable. But it takes too long to find what I need there. And when I went in the Seohora Shop there, well, I got the feeling they are not being treated well, they workers did not want to help me find make up. In contrast when I shopped at Seohora's in another mall the customer service was outstanding and I bought more than I went in for. That's they key to profit. Good customer service , and actual people to help shoppers!! I think they are missing out on that which is costing them not helping them. And for me it's back to another store where there are people around the area to help if needed!!!
  • Ivette A
    Ivette A
    I recently visited a CT. store. I was not happy with the changes, and did not find any special deals. Then I found out they took out many registers to make the store look more open. I think  it was a bad choose and I do not want to wait in longer lines  because they have less registers.
  • Alex Kecskes
    Alex Kecskes
    Thanks for your comments. JCP's move is bold. Time will tell if it's effective.
  • Antwan R
    Antwan R
    The American retail shopper has a psyche that proves successful..."SALES" and "Coupons" makes them feel as if they are receiving a bargin...even if they are not.
  • Daniel R
    Daniel R
    The whole concept of  the newly referenced "JCP" going after the 'texting' market with the hopes that it will appear hip is a classic example of the pendulum swinging too far in the other direction. The IZOD association should do wonders for the revamped format if they can manage to make their website look a little less like a revisited Penny's catalogue.
  • GAYLE
    GAYLE
    I recently shopped at the new JCP in Charlotte, NC.  I liked the new concept very much! Selection was great and associates very helpful.  
  • silbourne newell
    silbourne newell
    It's a bold move. Sales will suffer in the begining but the long term outlook looks promising. In the old jcp, there were too much sales event and coupons. The lowest price system is the right track to take. Bold but i like it.

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