This morning the Wall St. Journal headlined the plummeting fortunes of JCPenney or “JCP” as the company calls itself now that it’s run by former Apple veteran Ron Johnson. I was among the zillions of marketers applauding the idea that the guy who orchestrated Apple’s sleek and engaging retail stores had come to spruce up the brand that is more “cheap” than “chic.” But it seems that the Penney customers were more than Johnson bargained for.
$163 million of losses later, company execs are admitting that maybe their aspirations to repair company performance in one year was a little too ambitious. Seems they’ve discovered that their customers are addicted to coupons, as they dub them,‘drugs.’
Really? What a surprise. Why would you shop Penney without a coupon? Women know that the store has been a go-to stop on their repertoire of low-priced retailers, along with every competitor who offers coupons, rebates, free stuff to get her dollar. Why did JCP think that they could not only change their customer’s habits but actually convince her to abandon her smart shopping behaviors, just by adding an entertainment space to hang around in? No matter how many ad campaigns they’ve tried, JCPenney’s is the friendly, low priced department store with lots of deals.
I think that JCP didn’t value their MVP, the woman who has counted on them for good quality at a low prices, urged on with a deal. More than that, I wonder if Ron really likes his customers. My guess is that like lots of marketers, he probably wishes his customer was cuter, thinner, younger, richer and just dying to hang around in his store while paying full price on their cool kiosk. (Trust me, she’s too busy to ‘hang around’ and there are about three of these skinny, premium price paying, underaged wealthy women to lure to the store and she’s already on every one else’s dance card.) And I also imagine that JCP’s focus groups were used to prove Johnson’s theory rather than to really listen to who the heck is paying his paycheck.
Apple knew its customers and brand by heart. Time for Penney’s to meet their own, face to face and romance her all over again.
My reco? Love the one you’re with and she will bring more customers like her to your store. Women aren’t going backwards to full price, not in this economy, not at the value tier that this store serves. She was loyal to you. Why are you abandoning her?
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