JCPenney, you might have recalled, filed for bankruptcy in 2020 as the company was struggling due to the pandemic, and it is now worth noting that under the new ownership, it has announced a revival plan which is of $1 Billion and it is worth noting that the plan is scheduled to run till late 2025. By that time, the company plans to revive the old brand.
JCPenney’s CEO reveals that he “has no intention of adding to the retailer’s 15-year list of failed turnaround attempts anchored in bold, flashy moves. In the late 2000s, it tried to be fashion-forward. That bombed. Then in 2012, the department store ditched the coupons it was famous for to focus on higher-end brands, confusing shoppers and dropping sales by 25%, or $4 billion, in the first year. Some years later, JCPenney reentered the big-ticket home appliance category—and whiffed that too. For years, trying everything and anything was the retailer’s modus operandi”.
JCPenney’s CEO, in an interview, said “If you take fashion and home goods, the case for us is we have a mix of brands, whether it’s Levi’s, Hanes, Cuisinart, or our private label brands, and we can offer them at good prices in a place where you can also shop for beauty, and go to a salon and get your hair done. At some other retailers, you could buy a dress and put it in your cart with your milk and eggs, but that’s not the kind of moment our customers want as a shopping experience” talking about the difference between them and others like Target or Walmart.
Surprisingly, the CEO feels that they should target their existing customers more than acquiring new ones. He says “I’m not saying we don’t want to acquire new customers. We do, and we will. I’m just saying our primary focus will be driving frequency among our existing customer base, which is more addressable in the short term”. The CEO also mentions that “In the past, you’ve seen the company chase shiny objects and try to come out with a ‘big bang’ solution. This time, we’re saying we’ve got to fix the foundation.”
