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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