4 ms·

This just reflects the dilemma of the "new" JCPenney. They have a new brand strategy, but can only roll out physical changes slowly. So I go to my local mall

by smackfu 14y ago

This just reflects the dilemma of the "new" JCPenney. They have a new brand strategy, but can only roll out physical changes slowly. So I go to my local mall and the only differences in the store are new signage and nothing on sale anymore. Is that supposed to be appealing? Is it any surprise they lost sales in those stores?

mixmastamyk 14y ago
I thought the important part of the "no-sales" strategy was to have lower prices every day. Author doesn't mention it. Doesn't seem like such a bad idea? What might be happening is the same squeeze that happened to (now lower-end) stores like Sears and Kmart as well ... they can't compete on pure price against Walmart, Costco, et al. They can't move into the high-end because of historical baggage and lack of credibility, etc. And of course, the retail world has changed. Much business has moved online, and the widening gap of rich and poor (and their associated tastes), are a double-whammy to the solar plexus of the midrange retailer.
- smackfu 14y ago
  Shoppers are pretty jaded about retailers telling them they have "low prices every day". OTOH a sale where it really does cost $10 less this week than last week is concrete evidence.
- bradleyland 14y ago
  I think you pretty much nailed it. It looks like Johnson's strategy is to go after the customer that is more focused on experience, and less on getting the absolute bottom-dollar price. I think that has potential, but it's going to take a sharper eye than mine to identify the correct "experience" elements that will draw in that niche. What's odd is that this is JCPenny. As a brand, JCPenny is starting from the opposite end of the spectrum. That is to say, JCPenny shoppers aren't traditionally "experience" focused. We grew up poor. Pretty much all of my dress clothes growing up were Stafford (JCPenny's house brand), because they were inexpensive. My sister is a stereotypical frugal accountant; she's a JCPenny shopper. If JCPenny's goal is to convert their current customer base to an experience-oriented shopper, they're doomed to fail. If their intention is to attract new, experience-oriented shoppers, they might succeed, but they've got a tough road ahead.

by smackfu 14y ago

mixmastamyk 14y ago

I thought the important part of the "no-sales" strategy was to have lower prices every day. Author doesn't mention it. Doesn't seem like such a bad idea? What might be happening is the same squeeze that happened to (now lower-end) stores like Sears and Kmart as well ... they can't compete on pure price against Walmart, Costco, et al. They can't move into the high-end because of historical baggage and lack of credibility, etc. And of course, the retail world has changed. Much business has moved online, and the widening gap of rich and poor (and their associated tastes), are a double-whammy to the solar plexus of the midrange retailer.

smackfu 14y ago
Shoppers are pretty jaded about retailers telling them they have "low prices every day". OTOH a sale where it really does cost $10 less this week than last week is concrete evidence.
bradleyland 14y ago
I think you pretty much nailed it. It looks like Johnson's strategy is to go after the customer that is more focused on experience, and less on getting the absolute bottom-dollar price. I think that has potential, but it's going to take a sharper eye than mine to identify the correct "experience" elements that will draw in that niche. What's odd is that this is JCPenny. As a brand, JCPenny is starting from the opposite end of the spectrum. That is to say, JCPenny shoppers aren't traditionally "experience" focused. We grew up poor. Pretty much all of my dress clothes growing up were Stafford (JCPenny's house brand), because they were inexpensive. My sister is a stereotypical frugal accountant; she's a JCPenny shopper. If JCPenny's goal is to convert their current customer base to an experience-oriented shopper, they're doomed to fail. If their intention is to attract new, experience-oriented shoppers, they might succeed, but they've got a tough road ahead.