The Grand Plan to Save J.C. Penney

Posted by in Retail


What do J.C. Penney and Apple have in common? Not much. They both have retail stores. One is high-tech; another is “old school.” They may be very different in product and style, but they both had (or have) ties to Ron Johnson, formerly Apple’s head of retail and now the CEO of J.C. Penney. Fresh from Apple’s successful retail stores, he was hired to turn around J.C. Penney’s tired brand and retail stores.

 

You can see the influence in J.C. Penney’s new logo and advertising concept. But after 15 months on the job, Johnson and J.C. Penney are still struggling.

 

A Forbes.com article, “J.C. Penney And The Future Of Retail,” revealed Johnson’s grand plan to revive the J.C. Penney’s brand. The news is there isn’t really anything new about the strategy. Many retail “big box” stores are already doing the same things. In addition to grouping merchandise by gender or age group, retail stores are creating boutiques featuring designers or manufacturers within the stores. The article refers to the central area in many department stores that contains cosmetics and perfume brands like Estee Lauder or Channel. Even within gender-specific departments like menswear, you’ll find areas dedicated to brands like Polo or Tommy Hilfiger. 

 

While many stores have had this concept for years, the difference is J.C. Penney’s strategy extends these “stores within a store” to the entire store. It’s the same concept used in selling real estate. Take a house that has been on the market for a while. The house has no excitement. Prospective buyers come and go without making an offer. It may not be the house at all, but the way it’s presented. 

 

In come the home stagers—those creative designers and decorators who paint the walls, clear the clutter, rearrange the furniture and add a few accent pieces. Suddenly, the house is the hottest one on the market. J.C. Penney is counting on a form of staging to increase excitement and draw shoppers into their retail stores. Unlike other brands that have a few boutique areas, J.C. Penney is going to apply the concept to the entire store.

 

If you’ve ever been in an Apple Store, you know the feel, the vibe. New York City’s Apple Store in Manhattan is a glass cube, full of all the latest Apple products that everyone can’t live without. Even Johnson couldn’t turn J.C. Penney into the next Apple retail-type giant, but he believes that he can use his experience to make a substantial difference.

 

Another benefit of bringing in retailers to sell merchandise within the J.C. Penney store is cost-savings. Leasing space to retailers is one way to bring in revenue. These retailers often hire and pay their own employees, with a cost savings to J.C. Penney, who doesn’t have to hire (and pay) employees in these areas. 

 

Apple is known for its electronic and digital product lines. The branding is far from J.C. Penney’s reputation as a low-cost retailer. With competition from online retailers, it will be more difficult to keep big-box stores open and profitable. Johnson’s experience with large retailers like Target and Mervyn’s should give him credibility. Only time will tell. Penney’s is rolling out the new concept gradually, so though people may have heard about it, they may not see it in their locations. To work, the new concepts need to be experienced by shoppers who can get as excited about the merchandisers J.C. Penney brings into their stores as the launch of the latest version of the iPhone.  

 

Photo Courtesy of Wikimedia

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  • frieda r
    frieda r
    I personally love JCP.  Their Christmas specials are awesome, that is where I did most of my Christmas shopping.  I was there today at the mall and to my surprise I didn't see the discounts I was expecting them to have.  (Mostly children wear) Then I thought what the hell I will just run in Kohls and see what they have.  I have a Kohls card, but haven't bought anything there in a good while, Kolhs is just not what it used to be;  but I did find a outfit for my granddaughter and 2 new shirts for me at a really good price.
  • Kathleen M
    Kathleen M
    It was terrible when Berlin NH  lost it's JC Penneys store a couple years ago.  It had to have been making money. it was the only store in town.Your idea of bring in retailiers sounds good to me.  Right now, Penney's looks like a big department store with the way things are laid out.  It's overwhelming.
  • Mary Nestor-Harper
    Mary Nestor-Harper
    When I was younger, JCPenney was THE place to shop.  My mother bought her dining room set there.  Change is never easy for anyone, but if they don't please their customers, all the paint and redesign won't help them survive.  I hope they do, since everyone needs choices.
  • Elizabeth C
    Elizabeth C
    I hate the new ads for JC Penney and have almost completely quit doing business with them since these changes.  Old style was much better.  What a waste of money for these expensive new ads!
  • donna k
    donna k
    I recently went into your store in overland park, Kansas to shop for my 92 year old mother.  I have not had any trouble finding clothes for her  for years, because she likes the alfred dunner brand and I knew they would fit. her.  Well, not any more.  No selection at all.  Shame on you for taking so much away.  I will be shopping for  her elsewhere, which means I will shop for me elsewhere, too.  You took away too much.
  • Ron M
    Ron M
    JCP is gong through great strides to improving the shopping experience, but from the outside looking in, not much has changed. There has to be a specific reason a person or better yet a family shops where they do. So many questions so many improvements are still needed. Some are easy, like having shopping carts more acessible. Shopping carts increase sales, plain and simple.To more complex issues, like having the clothing that is advertised more accessible. I have been in retail all my life, and have learned much, one thing more then anything is customer service equals sales. Ron
  • Martha L
    Martha L
    I have always shopped jcp and I was upset at first about the new look and change, but then after the holidays I decided to go back in and I like it and I am a senior, I raised my two children with jcp on their layaways back then, and I realize why the layaway has been done away with. But because your clothing is quality I love shopping there, so very good jcp, I'm back. Martha
  • Gina B
    Gina B
    Maybe it's due to J.C. Penney  and Apple not knowing how to market to their strengths. There is a whole market of new students in elementary schools to market the new IPAD with apps, but I have yet to see the technology in the schools.  The same with J.C. Penney, they sell wedding dresses and furniture that you don't see in a regular store, only in a catalog. I like the new layout, the paint job, and the easy layout of men and children's clothes.  As a women shopper, can I go in  the women's sections and find a specific need in a short period of time? Bigger is not always better.
  • Sarah S
    Sarah S
    I've shopped at JCP for over 30 yrs and always knew I'd find something I needed there.  Not so since they changed marketing.  Their shoe department has shrunk and no longer carry the brands I bought as well as brands of clothes I bought and liked. Seems they are more concerned about a younger crowd.  My JCP is pretty empty when I walk in. Apparently many others feel the same way.
  • Dorothy B
    Dorothy B
    I think bringing Apple products into JCP is a great idea. It brings two worlds together and will make it more convenient for shoppers in today's busy life style. Hooray JCP you just got better and the world loves you!

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