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.
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