They had a recent change in the leadership of JC Penney, Ron Johnson is a former Apple retail executive. He joined the company with looking into the strategy in terms of pricing and sales, he did this by signing up for email alerts. What he was shocked by all the response he had received (Kinicki & Williams, 2013, p. 184). Johnson was flooded with sales announcements, they sometimes even had two a day. After him and the team had got together and counted all the sales in the last year, they came up with a number of 590 separate sales. Although, having all these sales they still only received four purchases a year. He then found out that nearly three-quarters of the products sold from Penney’s were at a discount of 50 percent or more. Mr. Johnson
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He came up with a risky radical solution, to “revamp” the store to the one he imaged in his mind (Kippen & Quin, 2013, p. 1). Johnson is hoping that with the remodel, he can lure consumers back. The image he laid out for them was to take out specialty shops, which are the “high-center selling space” and replace them with entertainment and a place to hang-out. This will help him to avoid using the constant “sales” and gain control on pricing. Mr. Johnsons said in an interview, “In an Internet age where you can have exactly what you want with one keyword, people won’t tolerate big stores. You have to break it down for them.” (Kinicki & Williams, 2013, p. 184). With taking out 1,100 fleet of the store will leave challenges, but it also brought consumers who were not there just for the markdowns (Kinicki & Williams, 2013, p. 184). When Myron Ullman was in charge JC Penney has had a repeat of blows from their competition Macy’s Inc. and Kohl’s Corp., they lost its catalog business and continued to struggle with the lack of needing discounts to clear merchandise. Mr. Johnson speaks of realigning the prices of products to make the consumers feel more comfortable on the prices to pay, starting with lowering the prices by 40 percent in February (Kinicki & Williams, 2013, p.
He came up with a risky radical solution, to “revamp” the store to the one he imaged in his mind (Kippen & Quin, 2013, p. 1). Johnson is hoping that with the remodel, he can lure consumers back. The image he laid out for them was to take out specialty shops, which are the “high-center selling space” and replace them with entertainment and a place to hang-out. This will help him to avoid using the constant “sales” and gain control on pricing. Mr. Johnsons said in an interview, “In an Internet age where you can have exactly what you want with one keyword, people won’t tolerate big stores. You have to break it down for them.” (Kinicki & Williams, 2013, p. 184). With taking out 1,100 fleet of the store will leave challenges, but it also brought consumers who were not there just for the markdowns (Kinicki & Williams, 2013, p. 184). When Myron Ullman was in charge JC Penney has had a repeat of blows from their competition Macy’s Inc. and Kohl’s Corp., they lost its catalog business and continued to struggle with the lack of needing discounts to clear merchandise. Mr. Johnson speaks of realigning the prices of products to make the consumers feel more comfortable on the prices to pay, starting with lowering the prices by 40 percent in February (Kinicki & Williams, 2013, p.