JC PENNEY’S STRATEGY OVERHAUL
January 25, JC Penney revealed a new logo, new image, and an entirely new pricing strategy, effective February 1.
Three clear pricing levels will trim JC Penney’s promotions to 12 a year from 590—an yearly promotional spend from nearly $1.2 billion to $960 million. This is a response to findings that only one in 500 JC Penney items sold at full price, while 72% of revenue was derived from selling products at 50% off or more. Now, a T-shirt that had retailed for $14 but typically sold at $6 will be priced at $7. As a monthlong value, it will cost $6. At “best price,” or clearance, it will cost $4. The retailer is also adopting flat prices.
A corresponding creative overhaul revealed new ads meant to feel like the Saturday Evening Post: fresh, warm, whimsical and American. A pre-launch campaign by Mother debuted yesterday.