After poor numbers, the company sees need to lure customers back into stores
San Francisco, CA -- (SBWIRE) -- 10/31/2012 -- The J.C. Penney CEO, who in the past had attempted to slow the company’s use of coupons now has a rather surprising coupon offer for customers.
In February, J.C. Penney had stopped offering coupons to hundreds of sales events that were held each year by the company. The move was to emphasize the ‘everyday low prices’. The strategy was a multi-year transformation that included the opening of nearly 100 specialized boutiques in stores.
"With all the changes taking place in our stores, the question I hear most often is: 'What's your vision for jcpenney?'" Chief Executive Ron Johnson wrote in the e-mail sent to customers early on Thursday.
There was a considerable slide into revenue loss after changes in the company began to ward off customers, who were already well into tightening their own belts due to the general economic climate. That fact forced the company to tweak and rearrange displays, merchandise placing, and make clearer note of clearance items.
According to analyst, the problem was that customer traffic had fallen overall. That traffic slow was considered at least partially due to the lack of pointed purpose for customers to come into the store. Without big-name sales and coupons, customers were simply lacking the drive to get them into the store.
"Why do that unless you want to drive traffic?" Morningstar analyst Paul Swinand told Reuters. "It's another sign they're having trouble weaning customers off of the old ways of shopping."
Despite initial signs of a successful move, and some quality revenue gains during the back-to-school season, the early September numbers were “much tougher” than expected, said Johnson to the Wall Street analysts in September.
Penney’s shares saw an increase 7.7% at $26.02 on Thursday on the N.Y. Stock Exchange.
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