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Ron Johnson seeks to bring Apple Store savvy to J.C. Penney

post #1 of 39
Thread Starter 
Apple's former retail chief Ron Johnson has outlined plans for revitalizing the 110 year old retailer J.C. Penney, which he now heads as chief executive.

Johnson introduced his plans to improve the performance and allure of the company's more than 1,100 department stores by getting rid of clearance sales and advertised promotions and instead promoting everyday low prices, "best prices" and month long deals.

The company also plans to introduce "store within a store" merchandizing that Johnson pioneered at Apple as a brand. The effort sounds similar to plans being taken by Target to replace a huge shopping experience with a series of boutique areas, usually focusing on a particular brand or designer.

The company printed a full page ad in the Wall Street Journal, introducing the company's new efforts as "No more pricing games. Just great prices from the start," and stating "we're not interested in being the biggest store or the flashiest store. We want to be your favorite store."




The ad has parallels to Apple's "Think Different" campaign, which attempted to reconnect the computer maker with its audience.

A decade after launching its own retail stores, Apple has reported $6.1 billion in quarterly revenues, along with plans to partner with Target in opening 25 new "stores within a store" locations this year.
post #2 of 39
This may just work. Got to keep an eye on JCP.
post #3 of 39
He's a guy who clearly knows his retail, so I'm interested to see how they turn this rudderless ship around.

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post #4 of 39
Very nice. Kudos to him. Perhaps we'll soon see clothing stores that ignite even some of the spark brought back into the experience of retail that Apple has put into buying computers.

Quote:
Originally Posted by SpamSandwich View Post

He's a guy who clearly knows his retail, so I'm interested to see how they turn this rudderless ship around.

Ah, but shouldn't they fix the leak first?

Isn't it funny, these ships always leak from the top…

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #5 of 39
If he can revitalize JC Penny's, that would definitely be good for the economy and maybe I will actually shop there again. Currently, JC Penny's selection is subpar and feels cheap, and the store feels like it hasn't evolved since the 80s.
post #6 of 39
Quote:
Originally Posted by Negafox View Post

If he can revitalize JC Penny's, that would definitely be good for the economy and maybe I will actually shop there again. Currently, JC Penny's selection is subpar and feels cheap, and the store feels like it hasn't evolved since the 80s.

I agree, but this sounds like it is evolving into the 90's department store model, which doesn't do anything for me. (Ok, I am an engineer, but) what is the point of separating shirts from Calvin Klein from those from Tommy Hilfinger? I really don't give a damn about which label are in the clothes... and they are both made by the same company.

A big store needs to successfully create various oasis where shoppers transition from bulk logic to quality logic. The separation by "department" is functional, but the chaos of a "department store" is just frightening.

Maybe I'm just not Mall People though.
post #7 of 39
Quote:
Originally Posted by aaarrrgggh View Post

I agree, but this sounds like it is evolving into the 90's department store model, which doesn't do anything for me. (Ok, I am an engineer, but) what is the point of separating shirts from Calvin Klein from those from Tommy Hilfinger? I really don't give a damn about which label are in the clothes... and they are both made by the same company.

A big store needs to successfully create various oasis where shoppers transition from bulk logic to quality logic. The separation by "department" is functional, but the chaos of a "department store" is just frightening.

Maybe I'm just not Mall People though.

As an engineer, you should know that you can't criticize a design that you haven't seen yet. This is just an ad saying "Under new management. Watch this space."
post #8 of 39
I REALLY thought Ron screwed up by leaving Apple for JCP. But, I have to say, I'm impressed with the initial advertising. If he can turn JCP around, I'll be surprised. But, it looks like he is on the right track.
post #9 of 39
As a family man,

I want
A Playground to keep the kids business while I shop
A free Wi-Fi for checking online reviews
A "Man Lounge" while the wife shop
Sell coffee and soda in the Lounge so I can drink and surf the web
post #10 of 39
They announced their pricing strategy on the news tonight. They are eliminating all "sales" and markdown pricing in favor of a consistent 40% reduction in their pricing. They will only have sale items during the major holidays. They will also eliminate the standard "XX.99" style pricing in favor of round numbers (for example "$20" instead of "19.99"), which has been one of the oldest retail scams of all time... it's a bit of a risk, because I've noticed that shoppers subconsciously pay no attention to the 99 cents after the main dollar figure.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

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post #11 of 39
looks like a Bank.
post #12 of 39
Quote:
Originally Posted by winstein2010 View Post

As a family man,

I want
A Playground to keep the kids business while I shop
A free Wi-Fi for checking online reviews
A "Man Lounge" while the wife shop
Sell coffee and soda in the Lounge so I can drink and surf the web

JCPenny stores are in the mall, and most mall already provide your wishlists
post #13 of 39
Does it occur to no one that it's Apples' products which are successful, and not Apples' hype?

The thing I love most about the internet is that its economically based on the illusion that advertising has ever accomplished anything other than annoying people.

Nearly all of us will be shopping at JC Penney in just a little while, but it'll be because the 1% sociopathic hoarders will have left the 99% no other economic option, and not in any way due to advertising.
post #14 of 39
Quote:
Originally Posted by milkmage View Post

looks like a Bank.

One institution's dirty, self-serving lies look much like another's.
post #15 of 39
Quote:
Originally Posted by DougMcNerd View Post

I REALLY thought Ron screwed up by leaving Apple for JCP. But, I have to say, I'm impressed with the initial advertising. If he can turn JCP around, I'll be surprised. But, it looks like he is on the right track.

Under any scenario, how can he have screwed up? He received over 230 million for his time at Apple. He doesn't need to work another day in his life. At JCP, he 1) has a new challenge, 2) is in charge, and 3) received over 50 million worth of JCP stock. Even if he completely fails, he still wins.
post #16 of 39
Quote:
Originally Posted by Negafox View Post

If he can revitalize JC Penny's, that would definitely be good for the economy and maybe I will actually shop there again. Currently, JC Penny's selection is subpar and feels cheap, and the store feels like it hasn't evolved since the 80s.


I am not sure how a revived JCP is good for the economy. Increased sales takes from somebody else. The problem with JCP is you can find the same product in a lot of different places, and as you say, the store feels cheap.

JCP needs to 1) revitalize its image, and 2) offer products that you can't get else place.
post #17 of 39
Quote:
Originally Posted by winstein2010 View Post

As a family man,

I want
A Playground to keep the kids business while I shop
A free Wi-Fi for checking online reviews
A "Man Lounge" while the wife shop
Sell coffee and soda in the Lounge so I can drink and surf the web

A family man? You leave your kids and wife behind! And for what, drink and surf?
post #18 of 39
Quote:
Originally Posted by TBell View Post

JCP needs to 1) revitalize its image, and 2) offer products that you can't get else place.

I would add to that 3) offer prices on similar items at competitive prices. I visited our local JCP during Christmas to buy my mother some items for her Keurig coffee maker. The exact same accessories were higher priced at JCP in comparison to the prices at Belk, and Belk's prices are usually 30% more than anyone else on the planet.

Changing pricing is a step in the right direction. But they also need to change the look and feel of the stores, so they don't seem like your parents (or grandparents) favorite store. I'm not saying make them over as a Spencer's, full of black lights and beer funnels, but give them a little hipness they are sorely missing.
post #19 of 39
Quote:
Originally Posted by AppleInsider View Post

Apple's former retail chief Ron Johnson has outlined plans for revitalizing the 110 year old retailer J.C. Penney, which he now heads as chief executive.

Johnson introduced his plans to improve the performance and allure of the company's more than 1,100 department stores by getting rid of clearance sales and advertised promotions and instead promoting everyday low prices, "best prices" and month long deals.

The company also plans to introduce "store within a store" merchandizing that Johnson pioneered at Apple as a brand. The effort sounds similar to plans being taken by Target to replace a huge shopping experience with a series of boutique areas, usually focusing on a particular brand or designer.

The company printed a full page ad in the Wall Street Journal, introducing the company's new efforts as "No more pricing games. Just great prices from the start," and stating "we're not interested in being the biggest store or the flashiest store. We want to be your favorite store."




The ad has parallels to Apple's "Think Different" campaign, which attempted to reconnect the computer maker with its audience.

A decade after launching its own retail stores, Apple has reported $6.1 billion in quarterly revenues, along with plans to partner with Target in opening 25 new "stores within a store" locations this year.

JC Penney needs fresh concepts and new innovations and that is where the person who was in Apple needs to deal with.The store is really old fashioned and needs a new rejuvenation.
post #20 of 39
I LIKE the coupons at JCP. When you combine the right coupon with the right sale the clothes are very very cheap.
post #21 of 39
Apple did not pioneer the "store within a store" retail concept. It was successfully implemented by retailers long before Apple even had retail stores (which do not even have a "store-within-a-store" merchandising concept).
post #22 of 39
Quote:
Originally Posted by SpamSandwich View Post

They will also eliminate the standard "XX.99" style pricing in favor of round numbers (for example "$20" instead of "19.99"), which has been one of the oldest retail scams of all time... it's a bit of a risk, because I've noticed that shoppers subconsciously pay no attention to the 99 cents after the main dollar figure.

"Oldest" I guess is a good word. It was invented by Ben Franklin, one of the US Founder's.
post #23 of 39
Quote:
Originally Posted by waldobushman View Post

"Oldest" I guess is a good word. It was invented by Ben Franklin, one of the US Founder's.

Source?

What we really need to do is just stop making pennies. That forces everyone to round to the fives. It's NEVER a case of people "not noticing the $0.99". How do you miss ninety-nine cents?! The real deception is the fact that all gas is $3.45 and nine tenths OF a cent.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #24 of 39
I really hated the stupid "buy one get second 50% off" sales gimmick JCPenney has. How about offering one at 25% off instead? Then when I don't feel like I'm being forced to get something I don't want I might look at more items then what I came into the store for and actually buy something else also.

And the amount of clothes that would interest middle aged guys like me has been reduced. There is little to choose from. Most of the clothes is stuff teenagers and college kids would wear. Guys come in different ages you know.
post #25 of 39
Quote:
Originally Posted by willb2064 View Post

Apple did not pioneer the "store within a store" retail concept. It was successfully implemented by retailers long before Apple even had retail stores (which do not even have a "store-within-a-store" merchandising concept).

had these kinds of deals usually with clothing manufacturers.. think Polo section in Macys/Bloomies/Nortstrom
post #26 of 39
Quote:
Originally Posted by AppleInsider View Post

Apple's former retail chief Ron Johnson has outlined plans for revitalizing the 110 year old retailer J.C. Penney, which he now heads as chief executive.

With a name like Ron Johnson, he could revitalise the adult entertainment industry:

Ron: What's that you're holding?
Girl: I dunno.
Ron: You're holding the wrong johnson, how about you grab hold of the Ron Johnson.

I guess if he prefers retail though, the opportunity will be missed. It should be pretty easy for him to make a big retail success for JC Penny in all fairness. He just has to fill their stores with Apple products.
post #27 of 39
Apple doesn't crap on about prices, so I don't know how this is bringing the Apple Store savvy. As others have said, it's great products first, then the rest is easy. Find some genius young clothes designer. The Steve Jobs of clothes, who can make something that looks like it belongs on the red carpet at the Oscars but costs on $100. They need a genius not a price fight.
post #28 of 39
Quote:
Originally Posted by milkmage View Post

had these kinds of deals usually with clothing manufacturers.. think Polo section in Macys/Bloomies/Nortstrom

That is the most obvious one, yes. Started off at higher end stores but were quickly adopted by mid to lower end dept. store chains. Chain I worked for in Europe started doing this in the mid-90's.
post #29 of 39
Quote:
Originally Posted by willb2064 View Post

Apple did not pioneer the "store within a store" retail concept. It was successfully implemented by retailers long before Apple even had retail stores (which do not even have a "store-within-a-store" merchandising concept).

I remember back when CompUSA was around, before Apple even brought in their reps, I would demo iMovie 1.0 to customers with my personal video camera. It wasn't till several months later when Apple brought in a rep to do the same thing
post #30 of 39
Quote:
Originally Posted by Ronbo View Post

As an engineer, you should know that you can't criticize a design that you haven't seen yet. This is just an ad saying "Under new management. Watch this space."

The only problem I have with JCP at the moment is their new screaming ad... can't stand it

Also went on their website to find a means to contact them. No where is there a way I could find to share this little point of view. Obviously they want to disseminate info... not accept it.
post #31 of 39
Quote:
Originally Posted by DougMcNerd View Post

I REALLY thought Ron screwed up by leaving Apple for JCP. But, I have to say, I'm impressed with the initial advertising. If he can turn JCP around, I'll be surprised. But, it looks like he is on the right track.

the new ad is terrible ... it just screams ... literally ... I seek the mute button everytime it is shown. If that is their new style, sorry, not appealing to us.
post #32 of 39
Quote:
Originally Posted by Marvin View Post

With a name like Ron Johnson, he could revitalise the adult entertainment industry:

Ron: What's that you're holding?
Girl: I dunno.
Ron: You're holding the wrong johnson, how about you grab hold of the Ron Johnson.

I guess if he prefers retail though, the opportunity will be missed. It should be pretty easy for him to make a big retail success for JC Penny in all fairness. He just has to fill their stores with Apple products.

This post is terrible, go away and get some real values in your life. Stop contaminating others
post #33 of 39
Quote:
Originally Posted by tomhayes View Post

I LIKE the coupons at JCP. When you combine the right coupon with the right sale the clothes are very very cheap.

They look right from the Goodwill store.Old fashioned looking.
post #34 of 39
Quote:
Originally Posted by TBell View Post

I am not sure how a revived JCP is good for the economy. Increased sales takes from somebody else. The problem with JCP is you can find the same product in a lot of different places, and as you say, the store feels cheap.

JCP needs to 1) revitalize its image, and 2) offer products that you can't get else place.

"Increased sales takes from somebody else."

Ours is ostensibly an economy built on competition. More healthy competition (that is, competition not interfered with by the government) is always better for the economy and consumers.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #35 of 39
Quote:
Originally Posted by madhatter61 View Post

This post is terrible, go away and get some real values in your life. Stop contaminating others

Oh lighten up.
post #36 of 39
Quote:
Originally Posted by crazor View Post

JCPenny stores are in the mall, and most mall already provide your wishlists

The problem with department stores are that they are too big. If I can't get everything I want I will go to another store in the mall. Once I leave, I'm not coming back. They need to keep me in their stores longer to keep me as a customer.
post #37 of 39
Quote:
Originally Posted by AppleGreen View Post

This may just work. Got to keep an eye on JCP.

It looks pretty badass, we'll have to see what happens. Why couldn't they keep him at Apple? I guess people all have their reasons and will want to do new things.
post #38 of 39
Quote:
Originally Posted by Feynman View Post

I remember back when CompUSA was around, before Apple even brought in their reps, I would demo iMovie 1.0 to customers with my personal video camera. It wasn't till several months later when Apple brought in a rep to do the same thing

Ah... CompUSA at Market Street, San Francisco circa 2000-2002. A wretched hive of scum and villainy. But it was alright, bought most of my Mac gear from there, and of course they had the colourful iMacs as a small Internet bar that was constantly full.
post #39 of 39
Quote:
Originally Posted by Negafox View Post

If he can revitalize JC Penny's, that would definitely be good for the economy and maybe I will actually shop there again. Currently, JC Penny's selection is subpar and feels cheap, and the store feels like it hasn't evolved since the 80s.

They need a new marketing strategy definitely that perhaps will help them once again.
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