JC Penney received a lot of attention and criticism earlier this year when it hired a new CEO who eliminated sales and coupons in favor of the “Fair and Square” pricing structure.
Consumers voiced their opinions about the pricing strategy with their wallets. The company lost $147 million, or 67 cents per share, in the second quarter that ended July 28, compared with a profit of $14 million, or 7 cents per share, the same quarter last year.
The changes under CEO Ron Johnson keep coming.
In Roanoke, JC Penney last month rolled out its jcp brand clothing for women and men, and in August opened “shops,” which grouped together brand names within the department store.
The jcp brand is described by the company as an “exclusive brand dedicated to high-quality fashion basics.” The brand includes items such as tank tops, shoes, coats, sweaters, blazers and jeans. Tank tops, the least expensive item in the brand, sell for $7, while the most expensive item is a woman’s wool coat for $80, according to jcpenney.com.
Johnson said in an August news release about Penney’s second quarter losses that the company is on the right course.
“We have now completed the first six months of our transformation and while business continues to be softer than anticipated, we are confident the transformation of jcpenney is on track,” he said.
Have you visited the “shops” or checked out the jcp brands? Do you think the “shops” or the jcp brand will lure back customers? What can the company do to win back your business, or do you like the changes?