Since taking over J.C. Penney, CEO Ron Johnson's vision has been the catalyst for some significant changes. Now, two new transformations are in progress for the mid-price department store: a new two-tier pricing structure to replace the unsuccessful three-tier structure of earlier this year as well as a roll-out of a store-within-a-store format.
In the last year, J.C. Penney has undergone several significant changes, from gaining new managers (and losing them) to a new pricing structure to a sophisticated store-within-a-store format. As shoppers respond to these changes, for good or ill, the rest of the retail world should take note of their reactions. For instance, shoppers might really like the new format. If so, that's something other marketers should take to heart. Also notable is that J.C. Penney didn't stick to a clearly unsuccessful pricing strategy. This speaks well for its management. Instead of doubling down on what hasn't worked in the past, the retailer is admirably working to reinvent itself. For now, J.C. Penney is down but not out, yet.
"J.C. Penney Adds Two-Tier Pricing as Johnson Alters Course," Bloomberg Businessweek, 7/26/12 http://www.businessweek.com/news/2012-07-26/j-dot-c-dot-penney-alters-pricing-as-johnson-changes-course
"JC Penney Launches ‘Shops' Concept with Levi's Store," Advertising Age, 7/23/12 adage.com/article/news/jc-penney-launches-shops-concept-levi-s-store/236252/