The closings were designed to relieve oversaturation in some of the company's markets. Store closing continued in 2009 and to a lesser
The stores now concentrated on clothing for the family and home furnishings. Although JC Penny attempted to adapt to this new trend, customers seemed to prefer high end or discount stores, relegating JC Penney to the mid-market. To assist in this shift, JC Penny brought in numerous highly compensated executives over the next several years to aid in their restructuring. During this time, there were store closings and employee layoffs, but this enabled the company to increase
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.
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.
After plenty of research it has become obvious that JCP did not only make choices that provided relief in the only the moment of need but also choices that would help in the future. By not eliminating any investments and cutting down on costs helped them to not go further into debt that to take several years to break out of. Instead, JCP were showing an increase in sales again by 2010 and continues to still show increases. This differs from Nordstrom and Kohl’s; each of these stores also seen an increase in sales in 2010 with Kohl’s seeing and increase as early as 2009. However, these two stores have begun to experience a decrease in sales in 2012 and continue to see a decline in sales.
Case Analysis: J. C. Penney Company, Inc. Founded by James Cash Penney in 1902, J. C. Penney Company, Inc. has grown into a major mid-tier retailer. Focusing on providing goods and services for middle-income families, Penney’s competes in several segments. Although men’s and women’s apparel accounts for nearly half of all sales, Penney’s has a diverse portfolio including cosmetics, hair salons, home furnishings and appliances (J. C. Penney Company, Inc., 2015). As one of the oldest retailers in America, Penney’s has recently struggled to maintain the loyalty of existing customers while attempting to attract new ones. Historical Background Penney’s faced a hyper-competitive environment following the recession of 2008.
Since he did not keep cost down he was spending more money than he was making. J. C. Penney lost 1 billion the first twelve months Johnson was CEO. Also, the low prices did not seem to
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,
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.
During that period, the companies like Costco and Walmart was the biggest competitor retail market selling the products at lower price. The E-commerce competitors able to offer the products at lower cost prices, free shipping etc. The company revenue was falling consistently and it was required to bring some new strategy to improve the demand. The New Designer Jenna Lyons was hired as a new creative director. The designer and CEO came up with the new strategy to overcome the problems faced by the company.
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
Founders of Ross Stores, Moldaw and Ferber continued to refine Ross’s merchandising strategy as the 1980s progressed. The company introduced to its 140 stores full cosmetic and fragrance departments staffed with beauty consultants, one of the new and decidedly upscale features adopted by Ross as it re-positioned itself for consistent profitability. In the chasm separating discount stores and traditional department stores, off-price retailers occupied the middle ground, but as the 1990s neared Moldaw and Ferber were tipping the balance toward the department store end of the scale by adopting the trappings of more upscale retail outlets. Like many off-price chains, Ross had never divided, or “departmentalized” its retail floor space into merchandise
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.
