The thing I've never understood about JCP is how they're trying to position themselves. They're not high end, and they're not the bargain bin. What are they? They're not communicating it to me.
Lets look at competitors. Walmart (which sells clothes and many similar items) is clearly the bargain bin. Kohls is basically the same. Target is tells me they are different and a little better, but still affordable. Macy's is "high end".
Where is JCP? Are they trying to be Target? If so, they should have taken a memo from Target's quirky ads and communicated the value they bring.
I have the same problem with Kmart. What are they?
Both are struggling and have zero mindshare (although Kmart's latest ads are clever, I still don't know what they are or why I should go there). Neither register when I'm thinking of where to shop.
Positioning is marketing 101 but is often poorly executed.
Gotta love people who think that buying an Apple computer makes them part of the Apple family.
But more on topic, this kind of psychotic brand loyalty is exactly why Johnson could never save JC Penney regardless of how much time he has. Apple fanatics misguidedly feel that they are part of the Apple Company and are insanely loyal to them, but people who shop at Penney's don't care about the company and will support the store that offers them the best prices that week. So his idea of bringing Apple Store's success to a department store was doomed for failure from the start. There just aren't enough nut cases out there who consider Penney's to be their "home".
I still can't believe the board would allow Johnson to change pricing before he had the stores redesigned. He should have worked on revamping the stores first and implement no sale/coupon pricing in the redesigned shops as they went live.
The only mistake that Ron Johnson made, as pointed out by Ken Segall, was that he eliminated coupons & sales before the stores were remodeled. So from the cheap-a** customer's point of view, nothing had yet changed at JC Penney's except for the elimination of their beloved coupons & sales. Ron should have remodeled all the stores into world-class experiences first, then eliminated coupons & sales afterwards. However, this still doesn't forgive the fact that all the customers of JC Penney are extremely dumb and stupid.
So people who use coupons and shops for things on sale are dumb and stupid. :no:
So, are they still pro gay and homosexual behavior, same sex marriage etc or did they come to their senses on that issue? Hey idiots, sometimes, it's better not to take sides on an issue, and to just remain neutral.
I think this just shows that Apple's success made Johnson, and not the other way around. You just can't argue with a 25% drop in sales under his tenure. He clearly screwed up. It doesn't matter if it was because the no coupon thing before the remodel or whatever other reason it's bleeding. It's clearly is a lack of execution.
Johnson was also pretty much responsible for Target's resurgence--so Apple didn't really make him (although that was an even bigger success, of course).
I thought his ideas for JCP were actually quite good and intriguing. If he would have had time to implement his brand store-within-a-store idea completely, I think JCP would have been an awesome place to shop. However, it would have been competing in the same league as GAP or Old Navy or Banana Republic style stores. For example, JCP's Levis store was completely awesome--an absolutely huge selection of styles and sizes (about 3 times the size of their previous offerings), fitting rooms within that single store-within-a-store itself, and a sales person just for that store-within-a-store.
JCP was losing money pretty fast before they brought Johnson on because they were/are effectively competing against cheaper stores like WalMart, but don't have much of anything better to offer customers. JCP customers are low-end spenders (in general), and Johnson was trying to switch those customers out for more spendy customers like those who shop at GAP, etc. (because that's where the money is). His idea was basically, make a GAP-like store, except make it huge (JCPs are generally quite large), make it really easy to find specific brands, make it really convenient (helpful sales clerks everywhere with specific knowledge of their "store", dressing rooms everywhere, etc.), and cater to higher-end customers who spend a lot (e.g., that's why they were catering to the gay community).
The brands that had the store-within-a-stores already implemented loved it. They were seeing double the revenues they were having previously. Unfortunately, only about 15% of JCP floor space was dedicated to those store-within-a-stores when Johnson was forced out.
It's actually quite a brilliant plan, but 2 things happened to kill it. The first was Johnson's mistake--he alienated the current customer base much too quickly. Sales cratered outside of the store-within-a-stores and that's like 85% of your floor space without many sales. He should not have cancelled the coupons/sales until, as others have said, more of his plan was implemented. The second was that the JCP board didn't give him enough time. As more store-within-a-stores were coming online, year-over-year sales would start improving as revenues increased, but they panicked and forced him out. In another year, I suspect, things would have been fine because you would have had double or more of the high-revenue floor space, and year-over-year sales would have been looking quite good when compared to the crappy previous year.
Long-term, JCP is effectively dead now (not that it's a huge loss).
I actually think Johnson has a good head for the business. He just misjudged the customers and the amount of time he had to pull it off.
Johnson made too many changes too fast. The expectations of his wizardry were too high. He needed two or three years to make it work. Soft goods don't sell like computers......Especially in a slow economy!
Too bad. I knew it wouldn't work
That's BS. Johnson failed because NO organization can change from the inside out without a complete rebuild of the entire staff top to bottom. As long there are old school staffers in that place Johnson's job was doomed. It had an old board of directors - standard retail philosophy -- he needed a much larger house cleaning to achieve the major overhaul he attempted to pull off. I've seen these scenario play out in the entertainment biz a gazillion times. Classic power struggle of the old vs the new - where the old dig in their heels and thwart the change -- poisonous environment.. He tried.. Doomed to fail. Apple operates by a totally different mindset. What sucks is he was sandbagged. Maybe he's not so smart.. ??!
So people who use coupons and shops for things on sale are dumb and stupid.
No. People who stop shopping at a store because they start selling $30 items for $30 instead of $50 with a 40% off! coupon are dumb and stupid.
Frankly, I'd say that JCP screwed up this "transition back" with this ad. Just start mailing people their beloved coupons again. There is no need to apologize for not having had them for a year or so. This just makes them look weak and desperate.
They even changed their logo and slogan again. So JCP customers shouldn't expect a "square deal" any more?
The guy's career is finished. If Apple can't find anyone internally to fill the role, it's a major (HR) failure on Johnson's part (before he left Apple).
That's pathetic. Why would it be a bad idea to rehire Ron? He made changes too fast without any pilot problems. Learn and improve.
People truly don't get that Apple Executives were managed heavily by Steve. He never hesitated to tell each and everyone of these egos that they are effin' up and need to show more or hit the door.
People bent to Steve's vision and will, not the other way around. He helped create a lot of people who then left thinking it was all them. There is a reason so few people from Apple actually go on to be huge successes in their own start ups. They never had that 1% vision to lead.
.
Steve didn't have time to micromanage all the execs. I don't know where you got that idea. He was brilliant but wasn't God. Why would Jobs hire empty suits? Ron came up with the Genius Bar and store layout. To minimize his contributions is foolish.
Gotta love people who think that buying an Apple computer makes them part of the Apple family.
But more on topic, this kind of psychotic brand loyalty is exactly why Johnson could never save JC Penney regardless of how much time he has. Apple fanatics misguidedly feel that they are part of the Apple Company and are insanely loyal to them, but people who shop at Penney's don't care about the company and will support the store that offers them the best prices that week. So his idea of bringing Apple Store's success to a department store was doomed for failure from the start. There just aren't enough nut cases out there who consider Penney's to be their "home".
If I had been a loyal JCP shopper for nearly 30 years and suffered through the lean years when people didn't get why I thought the JCP experience was just plain better and was long-term JCP stockholder and an active participant for a decade or so on JCPInsider and JCPNN, then I probably would consider myself "part of the JCP family." Loyalty and a sense of community are not easily created or granted.
Nah, what I am I saying, of course I'm just a misguided fanatic nut case.
So, are they still pro gay and homosexual behavior, same sex marriage etc or did they come to their senses on that issue? Hey idiots, sometimes, it's better not to take sides on an issue, and to just remain neutral.
Come to their senses? Really? You do know that the future generations won't put up with homophobia. Hell the shift is already starting to change rapidly on this issue. Those opposed will be on the wrong side of history like those opposed to civil rights previously
In JCP's defense, their store is very useful for us here in Sarasota, FL as we can park outside it easily as their area is usually empty and cut through to the rest of the Mall.
That'd be what Sears does for my local mall. Always tons of parking near that entrance.
They even changed their logo and slogan again. So JCP customers shouldn't expect a "square deal" any more?
Yeah, I noticed that during that shitty "sorry" commercial. Ron really tried to clean house and brought with him from Apple several people loyal to him to fill some of the other top spots. I forget the numbers but he checked on the servers at JCP to see how many hours the home office staff was using their computers to play Farmville on facebook. It was an amazingly huge number of man-hours (like a five-digit number of man-hours a month).
For example, JCP's Levis store was completely awesome--an absolutely huge selection of styles and sizes (about 3 times the size of their previous offerings),
They were seeing double the revenues they were having previously.
Hmm, three times the space for only double the revenue? Doesn't sound that good.
The guy's career is finished. If Apple can't find anyone internally to fill the role, it's a major (HR) failure on Johnson's part (before he left Apple).
Indeed. Cook is apparently gun shy after the Browett fiasco.
Comments
Lets look at competitors. Walmart (which sells clothes and many similar items) is clearly the bargain bin. Kohls is basically the same. Target is tells me they are different and a little better, but still affordable. Macy's is "high end".
Where is JCP? Are they trying to be Target? If so, they should have taken a memo from Target's quirky ads and communicated the value they bring.
I have the same problem with Kmart. What are they?
Both are struggling and have zero mindshare (although Kmart's latest ads are clever, I still don't know what they are or why I should go there). Neither register when I'm thinking of where to shop.
Positioning is marketing 101 but is often poorly executed.
In nine months JCP will close. Forever XXI will purchase the leases of many of the stores,
But more on topic, this kind of psychotic brand loyalty is exactly why Johnson could never save JC Penney regardless of how much time he has. Apple fanatics misguidedly feel that they are part of the Apple Company and are insanely loyal to them, but people who shop at Penney's don't care about the company and will support the store that offers them the best prices that week. So his idea of bringing Apple Store's success to a department store was doomed for failure from the start. There just aren't enough nut cases out there who consider Penney's to be their "home".
Oooooh Ron Johnson. Oh Don Piano.
Originally Posted by city
In nine months JCP will close. Forever XXI will purchase the leases of many of the stores,
If there's one thing I can remember from the last year, it's to never underestimate the stubbornness of stupid people. RIM's not bankrupt yet.
I can only assume that many Android proponents shop at JC Penney with five finger discounts.
Johnson was also pretty much responsible for Target's resurgence--so Apple didn't really make him (although that was an even bigger success, of course).
I thought his ideas for JCP were actually quite good and intriguing. If he would have had time to implement his brand store-within-a-store idea completely, I think JCP would have been an awesome place to shop. However, it would have been competing in the same league as GAP or Old Navy or Banana Republic style stores. For example, JCP's Levis store was completely awesome--an absolutely huge selection of styles and sizes (about 3 times the size of their previous offerings), fitting rooms within that single store-within-a-store itself, and a sales person just for that store-within-a-store.
JCP was losing money pretty fast before they brought Johnson on because they were/are effectively competing against cheaper stores like WalMart, but don't have much of anything better to offer customers. JCP customers are low-end spenders (in general), and Johnson was trying to switch those customers out for more spendy customers like those who shop at GAP, etc. (because that's where the money is). His idea was basically, make a GAP-like store, except make it huge (JCPs are generally quite large), make it really easy to find specific brands, make it really convenient (helpful sales clerks everywhere with specific knowledge of their "store", dressing rooms everywhere, etc.), and cater to higher-end customers who spend a lot (e.g., that's why they were catering to the gay community).
The brands that had the store-within-a-stores already implemented loved it. They were seeing double the revenues they were having previously. Unfortunately, only about 15% of JCP floor space was dedicated to those store-within-a-stores when Johnson was forced out.
It's actually quite a brilliant plan, but 2 things happened to kill it. The first was Johnson's mistake--he alienated the current customer base much too quickly. Sales cratered outside of the store-within-a-stores and that's like 85% of your floor space without many sales. He should not have cancelled the coupons/sales until, as others have said, more of his plan was implemented. The second was that the JCP board didn't give him enough time. As more store-within-a-stores were coming online, year-over-year sales would start improving as revenues increased, but they panicked and forced him out. In another year, I suspect, things would have been fine because you would have had double or more of the high-revenue floor space, and year-over-year sales would have been looking quite good when compared to the crappy previous year.
Long-term, JCP is effectively dead now (not that it's a huge loss).
I actually think Johnson has a good head for the business. He just misjudged the customers and the amount of time he had to pull it off.
That's BS. Johnson failed because NO organization can change from the inside out without a complete rebuild of the entire staff top to bottom. As long there are old school staffers in that place Johnson's job was doomed. It had an old board of directors - standard retail philosophy -- he needed a much larger house cleaning to achieve the major overhaul he attempted to pull off. I've seen these scenario play out in the entertainment biz a gazillion times. Classic power struggle of the old vs the new - where the old dig in their heels and thwart the change -- poisonous environment.. He tried.. Doomed to fail. Apple operates by a totally different mindset. What sucks is he was sandbagged. Maybe he's not so smart.. ??!
Quote:
Originally Posted by Rogifan
So people who use coupons and shops for things on sale are dumb and stupid.
No. People who stop shopping at a store because they start selling $30 items for $30 instead of $50 with a 40% off! coupon are dumb and stupid.
Frankly, I'd say that JCP screwed up this "transition back" with this ad. Just start mailing people their beloved coupons again. There is no need to apologize for not having had them for a year or so. This just makes them look weak and desperate.
They even changed their logo and slogan again. So JCP customers shouldn't expect a "square deal" any more?
That's pathetic. Why would it be a bad idea to rehire Ron? He made changes too fast without any pilot problems. Learn and improve.
Steve didn't have time to micromanage all the execs. I don't know where you got that idea. He was brilliant but wasn't God. Why would Jobs hire empty suits? Ron came up with the Genius Bar and store layout. To minimize his contributions is foolish.
Quote:
Originally Posted by Urkel
Gotta love people who think that buying an Apple computer makes them part of the Apple family.
But more on topic, this kind of psychotic brand loyalty is exactly why Johnson could never save JC Penney regardless of how much time he has. Apple fanatics misguidedly feel that they are part of the Apple Company and are insanely loyal to them, but people who shop at Penney's don't care about the company and will support the store that offers them the best prices that week. So his idea of bringing Apple Store's success to a department store was doomed for failure from the start. There just aren't enough nut cases out there who consider Penney's to be their "home".
If I had been a loyal JCP shopper for nearly 30 years and suffered through the lean years when people didn't get why I thought the JCP experience was just plain better and was long-term JCP stockholder and an active participant for a decade or so on JCPInsider and JCPNN, then I probably would consider myself "part of the JCP family." Loyalty and a sense of community are not easily created or granted.
Nah, what I am I saying, of course I'm just a misguided fanatic nut case.
Come to their senses? Really? You do know that the future generations won't put up with homophobia. Hell the shift is already starting to change rapidly on this issue. Those opposed will be on the wrong side of history like those opposed to civil rights previously
Quote:
Originally Posted by digitalclips
In JCP's defense, their store is very useful for us here in Sarasota, FL as we can park outside it easily as their area is usually empty and cut through to the rest of the Mall.
That'd be what Sears does for my local mall. Always tons of parking near that entrance.
Quote:
Originally Posted by malax
They even changed their logo and slogan again. So JCP customers shouldn't expect a "square deal" any more?
Yeah, I noticed that during that shitty "sorry" commercial. Ron really tried to clean house and brought with him from Apple several people loyal to him to fill some of the other top spots. I forget the numbers but he checked on the servers at JCP to see how many hours the home office staff was using their computers to play Farmville on facebook. It was an amazingly huge number of man-hours (like a five-digit number of man-hours a month).
JC Penny meet FW Woolworth...
Quote:
Originally Posted by bleach123
For example, JCP's Levis store was completely awesome--an absolutely huge selection of styles and sizes (about 3 times the size of their previous offerings),
They were seeing double the revenues they were having previously.
Hmm, three times the space for only double the revenue? Doesn't sound that good.