JC Penny case
General Background
Founded in 1902, JC Penney is one of America’s leading retailers, operating more than 1,000 department stores throughout the United States and Puerto Rico, as well as offering products online and through catalogs. In January 2012, Johnson was recruited by J.C. Penney investors and left the United States’ second-most-valuable company, Apple, to join the J.C. Penney. He wanted a new challenge. CEO Ron Johnson introduced a plan to rebrand the department store J.C. Penney. The plan was involved and would completely restructure the department store as America knows it. Clear objectives were set. A plan was put into practice that would initiate a three-tiered pricing structure and remove all sales and promotions. A new logo was created. Stores were to be completely redesigned, and turned into 100 mini-stores within each J.C. Penney. Unfortunately, the plan was executed sloppily and J.C. Penney took a 25% loss in just one year. Ron Johnson was fired after only 17 months. J.C. Penney is now searching for a way to survive.
The JCPenney Company considers its customers as its number one priority and has 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 streamlined, manageable set of monthly promotional specials.
Overall low prices have replaced sales and coupons of the past. Consequently, the company has updated to a trendier look, while attempting to keep up with competitors such as Macy’s and
Kohl’s. Although much of JCP’s new look and pricing has assisted the company in appealing to target demographics, additional merchandising steps could still be taken. Creating additional partnerships with
Founded in 1902, JC Penney is one of America’s leading retailers, operating more than 1,000 department stores throughout the United States and Puerto Rico, as well as offering products online and through catalogs. In January 2012, Johnson was recruited by J.C. Penney investors and left the United States’ second-most-valuable company, Apple, to join the J.C. Penney. He wanted a new challenge. CEO Ron Johnson introduced a plan to rebrand the department store J.C. Penney. The plan was involved and would completely restructure the department store as America knows it. Clear objectives were set. A plan was put into practice that would initiate a three-tiered pricing structure and remove all sales and promotions. A new logo was created. Stores were to be completely redesigned, and turned into 100 mini-stores within each J.C. Penney. Unfortunately, the plan was executed sloppily and J.C. Penney took a 25% loss in just one year. Ron Johnson was fired after only 17 months. J.C. Penney is now searching for a way to survive.
The JCPenney Company considers its customers as its number one priority and has 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 streamlined, manageable set of monthly promotional specials.
Overall low prices have replaced sales and coupons of the past. Consequently, the company has updated to a trendier look, while attempting to keep up with competitors such as Macy’s and
Kohl’s. Although much of JCP’s new look and pricing has assisted the company in appealing to target demographics, additional merchandising steps could still be taken. Creating additional partnerships with