I recently read an article in Business Week about a strategy that the CEO of J.C. Penney hopes will bring life to the slowly declining image of the department store. According to the article, J.C. Penney has had the image of being, “your parents store.” The CEO has introduced a trendier line of clothing in an effort to attract younger crowds that are more fashionable. The new line of clothing has already caused a slight increase in the companies’ profits. I think that CEO has made a good move in introducing a new line of clothing. I do not know that the increase in profits will be sustainable however. According to the article, Kohl’s is J.C. Penney largest competitor. In reaction to J.C. Penney’s new product line, Kohl’s has introduced its own trendy product line that is back by celebrity endorsement. Do you think J.C. Penney has a chance at reviving its image? Do you think they have made a good move? If not, what would you suggest that a company do to change its image?
7 comments:
I think it is a good move, because if this 'old' formula is not working wonders now, it probably will never do so in the future. I would have one word of advice though for Myron "Mike" Ullman III. J.C. Penney should be carefull that that new image doesn't leave them stuck without any customers. If you change your image you should be careful not to push away any loyal customers.
Jacob was right when he stated that J.C. Penny has made a good move introducing a new line of clothing, the financial numbers have shown that. Now the name of the game is to stay ahead of competitors such as Kohl’s. In order to do so, J.C. Penny will need to completely focus on the consumer and understand what brand lines are being demanded.
I agree with Joseph and Eric. J.C. Penney's move was good. While Penny's has an image of "your mother's store", the image of a typical mother has changed. From what I see women, even older women, including working and stay at home mothers are becoming trendier. Penny's can meet the needs of their loyal longtime customers and their newer trendy customers through their new and more updated clothing line. I think Penny's has an advantage over Kohl's because they are more solid in a wider array of products, like bedding, linen and household products. I think their strategy will prove successful as long as they continue to keep up with their customers' demand.
Every ManEc students ought to be able to see that this sort of move can lead to short-term profit increase, but not a sustainable one. It is simply too easy to copy.
FWIW: I know someone who was a fashion buyer for J.C. Penney (several years back), and I think her choice of clothes now is ... um ... funny. ;)
Dr. Tufte said:
"Every ManEc students ought to be able to see that this sort of move can lead to short-term profit increase, but not a sustainable one. It is simply too easy to copy."
I agree that this isn't a sustainable long-term strategy for this same reason (that it's too easy to copy) and others. I think the decision to change JC Penney's image will probably end up backfiring. Refocusing a target market can be very tricky. Likely, Penney's regular customers will get frustrated with the new style and shop somewhere else. The only way it will work is if trendier shoppers start to think of Penney's when they want to go shopping. It's been two years since this article was printed. I'm not convinced Ullman's strategy worked.
Dr. Tufte,
I agree with you and believe that this in the short run will help the sales, but will not last in the long run. JC Penney in order to stay competitive must provide something that is unique and different. They must continually be upping their fashion and have new styles coming in. The fashion world is constantly changing and it is important that JC Penney stay up with this fast paced industry if it wants to have that edge.
Jordan stole my thunder: it's two years on, and I don't see sustainable profits either.
Post a Comment