"This is called despair," I thought, "saysJohnson.Now, after three months in the position, the new executive president hopes to turn the company with a high range, although risky, of the department store format, in an effort to reconquer consumers.
Johnson, who won the applause for reinventing the retail shopping experience in Apple stores, an ambitious plan that consists of reforming stores in specialized business tours, converting the high -transit sales space in an area of an area of an area of an area of an area ofentertainment and where to spend time, and avoiding the constant "offers" in favor of lower prices every day.
The idea is to make stores more attractive, stand out the brands and win more prices."Some may think it's crazy, but I don't think there is an alternative,"Johnson said in an interview."In the Internet era where one can get exactly what they want with a keyword, people will not tolerate the big stores.One has to simplify the concept ".
However, the 1st platform reform.100 stores that have the chain raises expensive challenges, and consumers have been reluctant to spend without the incentive of large sales.
In recent years,J.C.Penney has been maltrecha for competition with rivals like Macy's Inc.and Kohl'sCorp.Under the direction of former executive president Myron Ullman,J.C.Penney got rid of his business by catalog and invested in exclusive brands and societies with successful sellers, such as the Mango Fashion Line and the Sephora cosmetic firm.However, he continued dealing with weak sales and the need for great discounts to liquidate the merchandise.
In an interview last week, at its headquarters, in Texas,Johnson said that the starting prices of the store needed to be realized with what customers feel willing to pay.As of February,J.C.Penney will reduce the initial prices by about 40%.
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It also plans to drastically reduce the number of promotions.J.C.Penney will choose a number of season items that will be on offer for a whole month.It will have two settlement sales, the first and third Friday of each month, called 'Best Price Fridys', an idea that borrowed from a regional department store that has already disappeared.Prices will be expressed in exact amounts in dollars, without cents.
The company plans to spend US $ 80 million per month on the program.
The initiative is risky since buyers have become expert sales seekers. Sin embargo, la estrategia deJ.C.Penney was not working.Sales in open stores at least for a year have risen 0.7% in the 11 months to December, a decrease compared to the 2.7% increase of a year ago and quite far from the 5.4% recorded by its rivalMacy's.
El pobre desempeño deJ.C.Penney duringChristmas led her to drastically reduce her gain prognosis for the fourth quarter.Its shares have risen about 6.7% in the last 12 months, very little compared to the profit of 47% of Macy's's.
J.C.Penney plans to open 10 new stores in the third quarter of 2012 and add more each month, until reaching its goal of 100 for 2015.