This week, I thought it would be great to recap on the JCPenney rebrand and what has happened since its launch back in early 2012 and what we can take away from it.
Unfortunately, Ron Johnson stepped down as CEO of JCPenney at the beginning of this month. While the news is not a big surprise with reports of disappointing sales figures and less than stellar stock performance over the last seventeen months, I am sad to see him go. I think what Johnson tried to bring to JCPenney was an extremely stunning vision. I do agree that JCPenney had to fire him in order to try and save the company but I think that his vision for the company was very ambitious and quite intriguing.
New Clothes, Fair Prices
When Johnson came to JCPenney he made some big changes. Two of those changes were a new pricing model and the introduction of new brands to their already existing retail lines but these also seem to be the most controversial changes he made and what may have ultimately led to his demise.
Johnson introduced the “fair and square” everyday low pricing scheme to do away with JCPenney’s never ending stream of coupons, sales and promotions. However, he failed to listen to what shoppers wanted. Sure, his changes made prices more realistic but consumers like deals. We are lured to retail stores via coupons and price markdowns. It is a game and we like to see how well we can do. You lose this sense of accomplishment when you have honest price tags.
While at JCPenney Johnson also revamped the clothes. He did away with the plain, inexpensive pants and sweatshirts of the retail brand’s past and brought in newer and hip brands like Joe Fresh. However, this also seemed to be disastrous because he alienated the original customer base. Many of the chain’s oldest and most loyal customers felt like they were no longer JCPenney’s target market so they simply stopped shopping there.
A Failure to Execute
Ron Johnson had a bold and innovative vision but I think he might have implemented too much change too quickly.
While most product offerings and strategic shifts are tested before being rolled out for a company as big as JCPenney, Johnson didn’t. He implemented the new pricing strategy all at once. He did the same thing with the apparel revamp. Johnson could have gradually introduced jeans bars and boutiques for brands such as Joe Fresh. Instead, he wiped out JCPenney’s long-established brands without considering how loyal customers would react. He failed to listen to what JCPenney really was as a company. He executed a vision, albeit stunning, that didn’t fit the company.
So What Can We Learn
For me, I think the most important lesson to learn is to be weary of quick-fix strategies. Sure, you can make dramatic changes. You could even argue that changes have to be dramatic to get noticed, but it should be backed up with a long-term strategy that considers established, loyal customers as well as the new ones. It seems to me that Johnson, although very successful with his work with Apple and Target, neglected to take the time to learn the culture of JCPenney before implementing his bold vision. His vision made sense and his execution was beautiful graphically, but in the end it was too much, too fast for a company with such a history.
Looking to the future
I, for one, am eager to see what JCPenney does next. They hired Johnson to try to save the company. It will be a real shame if they don’t make it. They were bold and willing to experiment with big changes. That makes me hopeful. They clearly care about their customers and remaining in business. If you ask me, I think they’ll find success. I’m eager to see how.
~ Bethany Howell, art director
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