J. C. Penney Plans Major Store Overhaul, New Image
New J. C. Penney chief executive Ron Johnson announced this week that he has major changes in store for the seasoned retailer. Johnson, who came to the company three months ago, after overseeing Apple’s retail strategy, is putting an end to J. C. Penney’s nearly continuous promotions to focus on a new pricing strategy.
This store will soon feature everyday prices, monthly specials and clearance sales, which will put it more in line with other big retailers.
Johnson also announced a plan to completely revamp the stores, dividing them each into around 100 small boutiques with the service center and “town square” at the center. His plans are ambitious given that Penney’s has over 1,100 stores and he plans to complete the project within four years.
The retailer has been struggling recently, and even had a tough holiday season, compared to its peers. Whether Johnson’s aggressive plans can turn the ship around remain to be seen. Some analysts point out that the nature of Penney’s real estate holdings will make it difficult to completely remodel the stores.
“Johnson’s ideas fit into the big trends in retail real estate right now, particularly the idea of the town square,” says Blacks Senior Consultant Steve Pruitt. “But implementing the changes are a different issue. I’ll be interested to see how they tackle these plans,” he added.
