Penney made several strategic mistakes since Ackman gained a seat on the J. Penney board in 2010, and brought in Ron Johnson to revitalize the company. Johnson's brief tenure at J. C. Penney introduced a new logo, Ellen DeGeneres as spokesperson, a simplified pricing strategy, reduction in the number of times prices are marked down, redesigned department stores. The changes at involved jobs cuts, including nearly 1,000 employees at its headquarters, and the closing of one-third of its call centers. J. C. Penney's original vision was to make money and build business through serving the community with fair dealing and honest value guided by the Golden Rule of doing unto others as you would have them do unto you (Beaver, 2015). The vision was nearly a century ahead of mainstream thinking, and is exquisitely crafted to be a key differentiator in today's retail market. J. C. Penney's original philosophy and value system established a powerful foundation with the company's associates, customers, as well as the community. J. C. Penny's turn around will largely depend on its ability to restore its corporate culture, and to reconnect with its alienated customers. A customer loyalty rewards program, in-store attractions, pop-up stores, and designer collaborations will drive in-store sales. Streamlining the online and in-store experiences though its omni-channel, integrating technology in-store, offering additional sizes, and the availability of delivery options (i.e., ship-to-home, in-store pick-up, etc.). .
J. C. Penney Case Study.
Company History and Background.
J. C. Penney is a value department store founded in 1902 by James Cash Penney as the Golden Rule Store. In 1909, J. C. Penney relocated from Kemmerer, Wyoming to Salt Lake City, Utah. The move positioned the company closer to banks and railroads, which strengthened the coordination of financing, buying, and distribution for the J. C. Penney chain. By 1911 the chain had expanded to twenty-two stores, and sales reached $1 million for the first time.
