The recent changes at J.C. Penney, including their new look and the “Fair and Square” pricing structure, had some blog readers wondering whether the changes would drive customers to the department store.
The answer, apparently, is no.
J.C. Penney lost $163 million in the quarter that ended April 28, or 75 cents a share, down from a profit of $64 million in the same quarter last year. (The company said that when taking into account the costs of restructuring the adjusted loss was $55 million, or 25 cents a share.)
“Sales and profitability have been tougher than anticipated during the first 13 weeks,” CEO Ron Johnson said in a news release.
The company reported the loss after it announced in February that it would eliminate its sales and instead offer three prices: best prices, month-long values and everyday.
Johnson, who came to J.C. Penney from Apple, remained confident he could turn the company around.
“While we have work to do to educate the customer on our pricing strategy and to drive more traffic to our stores, we are confident in our vision to become America’s favorite store,” he said.
Meanwhile, J.C. Penney announced it would launch new brands, including a JCP brand for men and women that will be in stores this fall, according to this Associated Press story. The company is also partnering with several designers, including Vivienne Tam and Betsey Johnson.
Do you like J.C. Penney’s new pricing structure, or do you miss the sales? Do you think the pricing structure will catch on with bargain-hungry consumers?