Every time my wife drags me into JCPenney, I ask myself the following question: What is this company about?
- Brand recognition (status)? Nope.
- Low Prices? Nope.
- Quality (higher than) products? Nope.
- Cutting edge fashion? Nope.
- Fashion for average folk? Nope.
They are simply without a defined aim. And that's why their business lacks. Retail is still alive and kicking, but not for companies who still live in the days of The Brady Bunch.
I'd say that a lot of Johnson's strategy addressed many of your concerns.
Personally, I shopped more at JCP over the past 8 months than the previous 15 years. There was an appealing mix of brands, quality, and fair prices that struck a chord with me. Unfortunately, it clearly didn't work for the majority of the mall-shopping public that has been trained to only buy when there's a sale or coupon.
His strategy seems to be based at copying what worked with Apple. Reducing product lines, making things upscale, removing sales, etc. I don't think how anyone who actually knew JCPenney would have thought that was a good idea. Their brand was already ruined.
Its not the general public at fault. Past JCPenney management ruined the brand by going coupon crazy. To the point that my wife only shops there when there is some stupid take 15% off, then add and additional 12% off of you buy another coupon. Otherwise, she thinks its too expensive (which I do think is right) for a department store.
This is the same kind of scenario that happens to businesses that became Groupon addicted. People stopped buying when no Groupon was available.
But the JCP consumer wants their coupons. Johnson shouldn't have tried to bring JCP up to Macy's or Nordstrom, it was never going to happen because Macy's and Nordstrom aren't giving up those customers.
Kohl's and Target have stolen the JCP consumer. Name recognition on clothes, low prices and sales, streamlined and targeted advertising, quality for a fair price. It's not that hard to do, Johnson just didn't know how to do it.
It seems to be a classic retail problem. How does a retailer hold enough sales and issue enough coupons to beat last year's sales, but avoid making their customers addicted to (or fatigued by) coupons and sales?
It's more of a market fit problem. You can use coupon almost everywhere and not damage your brand. Bit you can't use them to cover up fundamentals flaws in your business.
- Brand recognition (status)? Nope.
- Low Prices? Nope.
- Quality (higher than) products? Nope.
- Cutting edge fashion? Nope.
- Fashion for average folk? Nope.
They are simply without a defined aim. And that's why their business lacks. Retail is still alive and kicking, but not for companies who still live in the days of The Brady Bunch.