Posted Date: 1/26/2012
JCPenney CEO Outlines Pricing Transformation
At a launch event in New York City, JCPenney revealed initiatives to change its pricing and promotions strategy as well as its merchandise content and presentation. CEO Ron Johnson and President Michael Francis detailed how the company is reimagining every aspect of the company's business.
In the presentation, Johnson and Francis introduced a new pricing strategy called "Fair and Square," which includes three types of prices: everyday regular prices, month-long values and best prices. The best prices are the retailer's lowest prices that will occur on the first and third Fridays of every month to introduce new merchandise. And rather than inundating the customer with a series of sales, coupons, rebates and retail gimmicks, JCPenney will host 12 promotional events each year, on a monthly calendar.
"Beginning February 1, we will create tremendous excitement through monthly promotions that are in sync with the rhythm of our customers' lives," says Johnson. "We will transform each and every store over the next four years with a month-by-month, shop-by-shop roll-out of exciting new merchandise initiatives."
Johnson and Francis also outlined plans to include new sections in the store called Main Street and Town Square that will better organize the store layout and offer a series of services for customers to learn more about the products they buy. Main Street will feature a series of 80 to 100 brand shops. Among brands to be included are Martha Stewart and l’amour nannette lepore. JCPenney also said it intends to update existing brands IZOD and Liz Claiborne and expects to feature 30 new and transformed brands by fall 2012.