Monday, April 2, 2012

JC Penny's Makeover

JC Penny's latest undertaking is transforming their "aging" department store into a store of the future. They have recently started carrying new designer brands, began using simpler pricing, and updated the stores design. Penny's sales have been lagging, and they knew they had to make a change or the 110 year old brand would struggle. They were competing With stores such as Walmart, Khols, and Traget occupying the lower market, and Macy's and Nordstrom the higher, Penny's was stuck somewhere in the middle with a reported loss of $87 Million Dollars.

Their new plan includes different pricing. They decided instead of constantly having sales, they would just keep their prices as low as they could all the time. This way they avoid having to change sale signs and confuse customers with certain percentages off, instead all of their prices are at their lowest, at all times.

Do you think that JC Penny's new marketing plan if going to help them succeed in the current competitive market?

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