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Author: Goofyhoofy Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 14565  
Subject: Re: FK: JcPenney's Date: 11/16/2012 9:22 AM
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The customer (that you have) is always No. 1. Forget that at your own peril.

Radio stations change format from country to oldies, from classical to rock, from whatever to something else. Sometimes there just aren't *enough* customers. Sometimes they're the wrong customers. CBS TV dumped a bunch of high rated programs in the 60's because they attracted downscale and rural audiences. Beverly Hillbillies, Green Acres, even Andy Griffith, all gone. That was JCP's problem, they had to discount so heavily to attract customers that they couldn't maintain respectable profitability anyway.

I don't agree with the implementation here. There's little reason they couldn't have spruced up the stores while continuing some couponing and discounts, if only to ensure some continuing floor traffic. Going cold turkey was unnecessary, in my view.

(And the new stores aren't performing...it's the new *sections* in the old stores which are. Since only a small portion of stores have been changed over, there's still a long hill to climb. That said, at some point the year-over-year comps will start to look good, but only because the year-ago number will have been so dreadful.)

Mrs. Goofy went to JCP recently and came back amazed. "The merchandise and layout feels just like Target!" She exclaimed. I'm not sure if that's good or bad, but at least she noticed a difference. I would say Penney's will get a lot of walk-thru traffic during the holiday shopping season, so they have a chance to convert some perceptions here, even if sales don't automatically bounce back. But if they don't soon, there is trouble on the horizon both for the CEO and for the company.
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