At the bottom of J.C. Penney's (JCP) Q1 blowup could be something as simple as the concept that...

At the bottom of J.C. Penney's (JCP) Q1 blowup could be something as simple as the concept that U.S. consumers like their deals, according to Stacey Widlitz. The Ron Johnson-led strategy of reclaiming pricing by cutting out promotions backfired as traffic at stores fell off dramatically. While new brands and a transformation "ahead of schedule" could still click, the burning question is do investors have the patience to wait for it? JCP -15.2% premarket.

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Comments (3)
  • Dr. Poly
    , contributor
    Comments (384) | Send Message
    If JCP's merchandise had the cachet of an Apple product, there may not be a need for discounting. I don't see folks clamoring for their clothing lines.
    16 May 2012, 09:14 AM Reply Like
  • The Keating Letter
    , contributor
    Comments (162) | Send Message
    It didn't backfire at all. The new pricing strategy is allowing them to get new brands that they otherwise wouldn't have been able to get.
    16 May 2012, 11:49 AM Reply Like
  • glssmrbl
    , contributor
    Comments (1277) | Send Message
    A great discount store is an invaluable thing. The problem is JCP sells things that no one wants. As Cramer said on Mad Money, JCP ran off its customers while excluding new ones. I was a regular JCP customer for over a decade and used to love their products.


    However, nothing I want is in JCP anymore. They lack innovation in their clothing items and have no idea what types of people walk in their stores. JCP will fall for sure b/c nothing can be done to catch up with the competitors.
    17 May 2012, 01:31 AM Reply Like
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