Has JC Penny Succeeded in Bringing Customers Back to Their Stores?

In Customer Engagement, Customer Experience, Featured on App, Loyalty & CRM, Marketing and Sales by Vaughn Highfield

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JC Penny has had quite a bad time lately with their customers. Unless you've been living under a rock for the past year, you'll know that their efforts to revolutionise the store met with an awful lot of dissatisfaction from their customers.

So much, in fact, that it nearly hit rock bottom as customers fled the store and the newly appointed CEO, Ron Johnson, was fired for the unsuccessful changes he made.

Who knew that American consumers wouldn't like the idea of a store having no discounted ranges anymore?

That is, of course, a rhetorical question as everybody could tell you that American consumers are on the hunt for a deal. Removing that element from your store is sure to wind up with you losing few hundred here and there.

That's not all though, the change of store layout alienated even more consumers, leaving the brand in a state where it may as well have been operating ghost stores.

Now it's made some changes, re-hired Johnson's predecessor Mike Ullman as CEO once more, listened to customers and put out a rather large apology ad campaign, has it all worked?

The numbers would say that, indeed, it has. But, it's still got a long way to go.

Having issued its latest financial reports, net income fell by 113 per cent – equating to a loss of $348 million.

Despite all the changes, store losses were higher than expected.

What should be noted is that the 16.6 per cent drop in same-store sales is actually a large improvement over the 32 per cent decrease that JC Penny reported last quarter.

While that's little consolation, seeing as it's hard to go further beyond the bottom of the barrel, JC Penny are clearly starting to do something right.

Now just time will tell.


While there won't be any horror stories on par with JC Penny, at this year's Europe's Customer Festival discussions around ensuring customer loyalty and customer engagement through the bad times as well as the good will help you really understand and shape how you engage with your customers.