Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Business News

Could JCPenney save itself by tapping into their mountains of data they’ve ignored?

JCPenney has been a joke in the business world in recent years, but the new CEO thinks he’s uncovered a way to save the wounded ship.

jcpenney retailers rue ivanka


Is JCPenney finally getting their s**t together?

After several disastrous sales and public relations years, JCPenney seems to think their future is finally looking bright. According to JCP’s new CEO Marvin Ellison, who took over in August, the department store is now in the rebuilding phase of their recovery plans, and past what he called the “patching holes” phase.

Back in 2011, Ron Johnson, former senior vice president of retail operations at Apple, came to JCP with new ideas to make the company more modern. Johnson did away with coupons and sales, wanting a store where all prices were generally lower than competitors at all times – no coupons necessary. In addition, he did away with or downplayed JCP’s in-house brands like Arizona and St. John’s Bay to bring more attention to fashionable brands like Nike and Liz Claiborne.

By the end of Johnson’s reign, he had cut out 14 Penney’s house brands and replaced them with “cooler” outside brands. By the fourth quarter of 2012 fiscal year, same-store sales had plummeted 32 percent and by April of 2013 Johnson was ousted as CEO.

JCPenney is feeling pretty confident

With last quarter’s sales up 4.1 percent, Ellison is confident that the return of their house brands, store makeovers, and a focus on improved technology can continue to improve their sales, and help the company get back to where it was pre-Johnson.

Ellison and JCP will be mostly working on behind the scenes technology that shoppers won’t even consciously notice. The JCP team will focus on improved database management, demand forecasting, and personalized offers based on shoppers’ buying patterns.

Advertisement. Scroll to continue reading.

Improving each shopper’s experience is going to be a main focus; while JCP has the same number of shoppers as before its 2012 disaster, 86 million, its annual sales are $6 billion lower. Encouraging shoppers to purchase more with personalized offers is an easy way to subtly increase spending.

Investing in technology

Time and money spent on technology can also help JCPenney avoid the pitfalls that Target and other such stores are now forced to deal with publicly. Target’s shelves are suffering and constantly out of stock because their inventory management system is inadequate and lacking updates.

However, the right technology can help retailers purchase the right amount of product for each and every store – no underbuying, no overbuying, no wasted money, no unhappy customers.

Will investing in technology save JCPenney from itself?


Advertisement. Scroll to continue reading.

Staff Writer, Abigail White is a wordsmith who hails from the Deep South, having graduated with a degree in Journalism from Auburn University. She is usually reading three books at once, loves history, sarcasm, and arguing over the Oxford comma.

1 Comment

1 Comment

  1. Pingback: JCPenney adds another nesting doll of mini-stores via Nike partnership - The American Genius

Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Business News

The Federal Trade Commission is looking into reviving an old law about pricing, and it sounds like their first target might be the Pepsi...

Business News

Retail sales rose in October and fell in November - possibly December too. What made the Great Pumpkin pop?

Tech News

(TECHNOLOGY) The Metaverse has been the talk of the town for quite some time now, but how it will affect retail as we know...

Business News

(NEWS) Toys R Us is opening their newest store complete with a 2-story slide and ice cream parlor, as well as an exclusive partnership...

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.