11:15 • 1 year ago

Is J.C. Penney’s bold new pricing strategy actually working? Maybe not

strategy The company, led by former Apple exec Ron Johnson, embarked on a bold (and widely-praised) reconsideration of its pricing, cutting prices by roughly 40 percent across the board and cutting back promotions.
results However, the retail chain’s early results from the experiment aren’t quite so hot — an analyst for Citi says that chain’s revenue will dip by 7 percent this year, though profit margins will improve overall.
problem A key reason the chain’s results aren’t looking so hot? Two-thirds of people recently polled don’t know about the change in strategy, and those that do won’t necessarily shop more because of it. source

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