J.C. Penney Warns New Strategy May Not Work

J.C. Penney’s new pricing strategy was unveiled with great fanfare in January. But in its recent 10K, management struck a more cautious note about how it might play out.

“The changes to our pricing strategies announced in January 2012 could result in a prolonged decline in sales,” the company warned under “risk factors.” “There can be no assurance that our new pricing, marketing, and merchandising strategies, or any future modifications of our strategies, will be successful or result in improved operating results or productivity.”

Under former Apple stores head Ron Johnson, the company has switched to a new pricing strategy it calls “Fair and Square,” which involves cutting the number of sales it holds from 590 to 12.

J.C. Penney also plans a “Town Square” concept, which will debut over the next year.

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