Ron Johnson, the new CEO at J.C. Penney Co. (NYSE: JCP) has announced his new plan to rejuvenate the company and its profits. In a press release announcing the plan Johnson said:
The department store is the number one opportunity in retail today. We are going to rethink every aspect of our business, boldly pursue change, and create long-term shareholder value, as we become America’s favorite store.
A new pricing strategy, called “Fair and Square Pricing” is the centerpiece of the company’s plan. It comprises everyday low prices, month-long pricing specials, and special low prices on the first and third Fridays of every month.
The company will also undertake a makeover plan for its 1,100 stores “to update all stores with new and exciting merchandise and presentation.” The transition includes adding 80-100 brand shops inside each store, as well as a concept called “Town Square”, an area that will offer unspecified services for customers.
JC Penney has also renewed its alliance with Ellen DeGeneres as a brand partner, and will roll out a new logo and new brand marketing to support the plan.
Investors are not terribly impressed, sending the company’s shares down nearly -3% in the early afternoon, to $33.61 in a 52-week range of $23.44-$41.00.
Paul Ausick
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