Message Font: Serif | Sans-Serif
No. of Recommendations: 2
JCP, fallen more than half now. Misstep is doing away with "discounts" and "sales". We all know these are not discounts but rather prices raised and these so-called discounts makes you get it at reasonable markups.

Problem is, they under estimated the effect of this. As one analyst said: people want to think they are getting one over the store (something like the "stick it to the man") by using these coupons or sales. Without these incentive, sales are down over 26%.

For the good news, newly revamped stores are far outperforming older ones. They have also introduced the store within a store concept which is also doing quite well. Several notable fund managers still believe in it.

Bad news: Dwindling cash. Drop in store traffic, sales almost crashed. CEO sticking to strategy that caused this problem to begin with (although they are offering a $10 discount this coming peak season).

My take: They are doing a lot of things right, but seems like they are not listening to their customer - "We want to stick it to you, even though we know we are fooling ourselves". I love their Levi's and other mini-stores, but who would see it if there's nothing pulling customers in? Accept your blunder and start shipping out those red coupons and sales flyers.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.