JC Penney (JCP) shares fell 4.2% in afternoon trading after reports that CEO Ron Johnson told investors at a conference that company’s pricing strategy has been “confusing” to shoppers.
Reuters reported that the company will bring back the word “sale,” a word that JC Penney had jettisoned under Johnson in an attempt to move the brand away from its reliance on frequent promotions to draw customers in. Instead JCP has called its price reductions “month-long values.”
But clearly, the new strategy isn’t pulling enough shoppers into the stores. In the first quarter, same-store sales plunged 18.9%.
No comments:
Post a Comment