(Except, they’re really not. They’re just going to start using the word “sale” again.)
In the continuing saga of JC Penney going to an everyday-low-price strategy, JC Penney lost over $55 million and the CEO compared coupon shoppers to drug users, trying to wean them off coupons and sales.
Today, CEO Ron Johnson announced that JC Penney will resume using the word “sale” in its advertising, instead of the current “month-long values.” From Reuters:
J.C. Penney Co Inc is bringing back the word “sale” in its advertising in hopes of stemming a sharp slide in business.
The department store operator has been trying to wean shoppers off the long-used hundreds of sales events and coupons — as part of a strategic overhaul by Chief Executive Ron Johnson. The chain blames the way it has communicated the strategy for contributing to a steep drop in sales in the first quarter.
Johnson said he recognized that shoppers did not understand the advertising of the new pricing model.
But the retailer has avoided using the word “sale,” instead calling the events “month-long values.” That didn’t work.
“We’re moving away from the word ‘month-long value’ because no one really understood that, to calling it what we intended to do, a sale,” Johnson said.
Seeing as how his original intent was to get rid of sales, I don’t think changing the name of their new month-long pricing to “sales” is going to change a thing. Shoppers love sales… but they’re also not stupid.
Calibabydolly says
and I am going to need my coupon “fix” as well!
christina23 says
This guy continues to insult his dwindling customer base. First the customers are like drug users addicted to coupons. Now they are too stupid to understand what “month long value” means…3 simple words which mean not such a great price.
Julieb says
I knew it was only a matter of time before this would change, but I never imagined they would start cracking so soon! With all the people taking to social media speaking out against this change, it seems that we couponers and bargain hunters still have a huge effect on what drives sales.