When you hear the word JCPenney’s what do you think of? That’s right… you probably don’t think about the store anymore. Well now JCPenney’s are trying to revamp their stores to bring the customers back in. There are two strategies to conquer the retail world: deduction of prices & creating “brand shops”.
You have most likely seen the commercials with people seeing price tags & coupons with strange prices and screaming. JCPenney’s has decided to stop weekly sales or coupons and will reduce prices up to 40%. Instead of the weekly sales, they will have promotions that will be monthly so shoppers can come in at their expense.
Last year, over 75% of their customers purchased items that were on sale. So they are definitely taking notice to what the customer is buying and appeasing their needs. Instead of seeing, $19.99 on price tags, you will now see only solid digits. Like that $19.99, will become a straight $20.00. No more false “discounts”… What you see is what you get!
Next, JCPenney’s is starting to have individual “shops” of similar clothing together. They are being compared to Target with the limited edition collections they have. On their roster of designer shops are: Nicole Miller, MNG, I Heart Ronson, Olsenboye, and L’amour– A juniors line of Nanette Lepore. Similar to Target, JCPenney’s will have a monthly “radical transformation” to focus on the designer for the month. Here is where the $800 million come into play, the money is going into the exclusive shops. Executives say that it will mostly rise to $900 by 2013.
Looks like JCPenney’s wants to get their spot on the top of the retail world… Will they make it there? Is the 800 million going into the stores come back to the company?
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