The closings were designed to relieve oversaturation in some of the company's markets. Store closing continued in 2009 and to a lesser
They have many competitors that are surrounded around their company. To name a few Aaron Brothers, Pottery Barn, Melissa, and Sprinkles and many more. Having many companies selling similar services or goods while trying to meet customer needs can be very challenging. They will have to look at new ways be successful and bring in more revenue in the changing market.
Penney was devastated and later wrote that with Berta’s death, his “world crashed” around him. Despite his grief, Penney’s business continued to prosper. In 1912, there were thirty-four Golden Rule stores with sales surpassing $2 million. The chain name was changed in 1913, becoming the J. C. Penney Company. By 1914, Penney relocated his headquarters to New York City to be closer to the major sources of merchandise.
They were now struggling to attract young people/young families into the stores. JC Penny’s image was that they were the store for the poor and the elderly. One effort to take the stores in a new direction was to lease store space to cosmetics retailer, Sephora. The hope was that this would attract young, female customers who would then shop in the other departments in the store. • Changed marketing strategy - JC Penney changed a large part of who they were as a retailer in an effort to compete with other department stores.
His background prior to taking position as CEO of JC Penny he joined Retail of Apple Inc. in 2000 as a Senior Vice President. Prior to joining JCP Penny and Apple he executed in different areas and positions with Target Corporation, as Senior Vice President of Merchandising. “. During his tenure at Target, Mr. Johnson had responsibility for such categories as Men’s Apparel, Women’s Apparel and Accessories, Children’s and Home. He has served as a director of the Company and as a director of JCP since 2011” (JC Penny, 2013 p 50).
Three months into his position as Chief Executive of J.C Penney, Ron Johnson was wanting to turn things around. Mr. Johnson chose to actualize the same procedure utilized at his previous organization Apple. He laid out arrangements that included turning the stores into distinguished shops, lounge areas and overlooking steady deals for consistently low costs. The thought to make the store all the more welcoming included, highlighted brands names, acquire control over estimating. J.C. Penney has been battered for a long time by its rivals.
Throughout the financial crisis of 2008 JCP and many other department stores continued to see declines in sales and net earnings. Although JCP was closing stores and opening others the significance of the store closures were the stores that were that were closing were primarily leased store buildings that had seen a great amount of sale decline. This tactic was used to reduce to amount of money being paid out rather than eliminate any assets. Choosing to close leased stores allowed for more money to be saved on operating cost and allowed for assets to remain on any balance sheets. This differs from Boarders, although Borders was a bookstore it is still a great example of the effect of being that being unable to close any leased stores has on a company (Wahba).
Struggling to stave off collapse after years of steep losses, while competitors were expanding into emerging markets, they were desperately trying to stabilize and hold ground. Currently, the global marketplace is beyond their reach. Penney’s is also hampered by a lack of differentiation from competitors. Kohl’s, Macy’s, and even Wal-Mart target similar market segments with similar products. Finally, and most importantly, Penney’s has lost their customers’ loyalty.
J.C. Penny has decided to change it’s strategy plan. Chief executive Ron Johnson wanted to take a different approach to get shoppers to do more business with them. According to the sales report, the average customer only shopped with J.C. Penny only four times a year. To make matters worse, Ron Johnson was disgusted that three-quarters of Penny’s product sold at a discount of 50% or more. At that rate, this store that has been around for decades will be soon closing it’s doors.
Trader Joe’s Case Analysis Introduction This case analysis studies the Trader Joe’s retail chain that operates in the U.S domestic market. It identifies the current competitive strategies being employed by the company, the key issues it faces and proposes a number of improvements that are considered useful for the growth of the company in the future. Trader Joe’s is a privately held company that was founded in 1967 by Joe’s Coulombe and it is presently owned by the Albrecht family trust. Since its establishment, the Company carries out its business using the concept of Fresh & Easy Stores and targets the overeducated and poorly paid customers, who were believed to be sophisticated and interested in finding good bargains (Ager & Roberto,
By doing so he wanted to have more control therefore the type of hierarchy culture is also applied to J.C. Penney under his leadership (Kreitner, 2013,
No brand identity Disconnected customer experience across stores, reducing consumer loyalty. Lost sales. Depleting profit Autonomy of independent stores No control over suppliers Customer Relationship Management Disparity pricing across stores, confusing consumers on ‘real’ price. Consumers turn to competition in search of a bargain. No information flow due to poor information sharing infrastructure or in cases where available, not being fully utilized.
Johnson used the cost-leadership strategy while he was CEO of J.C. Penney. One of the major strategies he implemented was the lowering of prices by 40 percent. By doing this not only did Penney provide an acceptable product that had the same quality but the products are also at a lower price. Johnson’s strategy of have a select number of products on sale for a month and having clearance sales monthly attracts customers that are looking for a bargain. This can attract a large number of returning customers and new customers.
This would have given then the reduction in immediate salary cost and less risk in loosing profits if the merchandising brought in a lot of revenue for an extended period of time. That is just one example that seems obvious to me at the
After Nardelli came in the employees didn’t stand a chance because he came in with new ideas. Once he expose the change of new ideas the employees didn’t have not one desire for transformation. Soon as he was in the doors good he instituted cutting cost. He start cutting fulltime jobs, capped employee’s wages, and hired military officers to run the stores. Customer service collapse and declined with the new regime.
