Summary Of J. C. Penney's Strategy

Words: 495
Pages: 2
Open Document
J.C. Penney’s new CEO Ron Johnson has decided to make changes to the company’s strategy. Shortly after taking the new position he learned the company had marketing strategies that were what he considered to be over the top. After signing up for email notifications, he found his inbox flooded with sales notifications. This was concerning as 75% of J.C. Penney’s merchandise was discounted at 50% or more. Furthermore, research showed the average customer only made a purchase four times a year. These frequent sales were not effective at increasing profits for the company.
The new CEO has now taken on the risky venture of reinventing the retail experience at J.C. Penney. Johnson strategy is to replace the constant sales with everyday low prices and eliminate the high traffic store center and make it an entertainment epicenter. The retail store also wants to update pricing in order to bring shoppers back into the store and create profits. …show more content…
Penney will prove to be tasking. Many of J.C. Penney’s clients have become accustomed to huge discounts offered by the company. In recent years, the company has faced strong competition from Macy’s Inc. and Kohl’s Corp. In efforts to increase revenue, the J.C. Penney eliminated its catalogue and invested heavily in name brands such as Sephora and Mango. However, these efforts have not been successful as the retailer still must offer large discount prices in order to move the merchandise out the store. This has not been an effective strategy for the
Show More

Related Documents: Summary Of J. C. Penney's Strategy

Jc Penney Company Overview Essay

serves the same type of customers and provides generally the same merchandise mix. JC Penney’s business is conducted through a single segment, but revenues are reported by product category. In addition to their product categories, the…

Words 3477 - Pages 14

Executive Summary Of J. C. Penney Company

Executive Summary The J.C. Penney Company considers its customers as its number one priority and provided them with an abundance of sales and promotions. Today, JCP has further expanded its brands into on-trend fashions and partnered with successful product lines such as Sephora within JCP stores. In doing so JCP has positioned itself to serve a wider range of consumer’s wants and needs. Recently, the company has undergone a transformation from a barrage of constant sales and discounts to a more…

Words 2065 - Pages 9

Managing Information Technology (7th Edition) Essay

CONTENTS: CASE STUDIES CASE STUDY 1 Midsouth Chamber of Commerce (A): The Role of the Operating Manager in Information Systems CASE STUDY I-1 IMT Custom Machine Company, Inc.: Selection of an Information Technology Platform CASE STUDY I-2 VoIP2.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier CASE STUDY I-3 The VoIP Adoption at Butler University CASE STUDY I-4 Supporting Mobile Health Clinics: The Children’s Health Fund of New York City CASE STUDY I-5…

Words 239873 - Pages 960