jcpenney unveils plans to become America's favorite store
At a launch event in New York City, J. C. Penney Company Inc revealed its plans to become America's favorite store. In a presentation titled "In Praise of Fresh Air," Ron Johnson, the Company's chief executive officer, and Michael Francis, its president, detailed the initiatives that will transform the jcpenney shopping experience by fundamentally re-imagining every aspect of the Company's business and boldly pursuing change.
"The department store is the number one opportunity in retail today. We are going to rethink every aspect of our business, boldly pursue change, and create long-term shareholder value, as we become America's favorite store. Every initiative we pursue will be guided by our core value to treat customers as we would like to be treated - fair and square. Beginning February 1, we will have Fair and Square Pricing, making every day a great day to shop. We will create tremendous excitement through monthly promotions that are in sync with the rhythm of our customers' lives. And we will transform each and every jcpenney store over the next four years with a month-by-month, shop-by-shop roll-out of exciting new merchandise initiatives," Mr. Johnson said.
Fair and Square Pricing and Monthly Promotions in Sync with Customers' Lives:
During the presentation, Mr. Johnson and Mr. Francis introduced a new pricing strategy called Fair and Square, which includes three types of prices. Everyday, regular prices, which are always great; Month-Long Values, even better prices on the things you need now; and Best Prices, jcpenney's lowest prices, which always happen on the 1st and 3rd Fridays of every month as jcpenney makes room for exciting new merchandise.
These prices will be coupled with a new promotional cadence that is in sync with customers' lives. Rather than inundating the customer with a relentless series of sales, coupons, rebates and retail gimmicks, jcpenney will host 12 promotional events each year, on a monthly calendar. Each month will include even better values on the things customers are looking to buy during the month and a host of exciting products and services that are unique to the month.
Commenting on the new monthly calendar, Mr. Johnson said, "We want customers to shop on their terms, not ours. By setting our store monthly and maintaining our best prices for an entire month, we feel confident that customers will love shopping when it is convenient for them, rather than when it is expedient for us."
Re-inventing the In-Store Experience around New and Transformed Brands:
At the event, Mr. Johnson and Mr. Francis also outlined plans to entirely re-invent the jcpenney store experience, to include Main Street -- the entire store merchandised in a series of 80 to 100 brand shops, rather than the confusing and seemingly endless racks common in department stores today. It will also feature Town Square -- an exciting new place that replaces the traditional retail center coreof a department store with a series of services, which customers will enjoy before they buy, while they shop and afterwards. And, throughout, the new jcpenney store experience will merge the physical and digital worlds, assuring the physical retail stores' vital role as the centerpiece of retailing's future.
jcpenney also announced plans to transform its customers' favorite existing brands, including, IZOD, Liz Claiborne and The Original Arizona Jean Company and a number of others. jcpenney expects to feature 30 new and transformed brands by fall 2012.
Launching a new jcpenney brand identity, new logo, new look and Ellen!
In celebration of the complete transformation of its shopping experience, Mr. Johnson and Mr. Francis gave an overview of the new jcpenney brand identity.