JCP has a serious problem. The only way it can get shoppers in their stores is by coupons. Customers are going in and buying the most desirable products that JCP carries and getting them at a discount of say, 25% off. Riddle me this: how does JCP sell the less-than-desirable products without selling them at cost or even below cost? After it's all said and done, they'll be lucky to break-even. As we saw with the last CEO's changes, in the customer's mind, JCP = coupons. Once your company is known for that, it's impossible to reverse it.
Sentiment: Strong Sell
No #$%$, Sherlock,,, but once you have ruined a company and lost the customers,,, there ain't no turning back!
Pack your briefcase sweetie,,, and I would suggest you start looking for a new job now during the holidays, cuz come next jan/feb when you lose the one you have,, you being the old fart that you are, won't have an easy time finding anything else... Get ready for the rocking chair, with the parrot drippings on your shoulder~!
My aunt stopped going to JCP when RJ stopped the insane couponing. Now the JCP coupons are back in full swing.
She got a $10 off $10 purchase coupon and a $10 off $25 purchase coupon via a snail mail circular. Also, there were several JCP circulars in the local newspaper this past week. Both had $10 off $25 purchase coupons.
She and her friends took all the coupons and went shopping at JCP. I'm not sure what this does to JCP's gross margin since before RJ, JCP was running sales all the time and coupons were rampant, but they still made money. I guess JCP is just going back to the tried and true method that made them profitable in the past...
The plan is to get customers to return to their stores. Once they establish a customer base to what they feel is a solid foundation, then you will see a marketing change.
Sentiment: Strong Buy
@hugh…Hello? Have you been shopping anywhere? All retailers have coupons and/or discounted merchandise! You name the store (except maybe very high-end boutique) and I can shop items 25, 40, and 50% off on any given day…and actually more. Even shoes and jewelry are discounted! What are you talking about?? YOU obviously are NOT female. I guess it's true about God creating the Gentiles so someone could buy retail, ha. Go JCP! Make all shorts cover!
Yup, that's how this whole sector works, Macy's Nordy's anyone. They mark up stuff to ridiculous prices then have a 50% off sale to get everyone in the store and make them think they're getting a good deal. My mom's old lady friend just said to me a month ago, "I used to shop at JCP but they stopped sending me coupons in the mail".....I told her they'll be back and they are, and she's shoppin'
"how does JCP sell the less-than-desirable products without selling them at cost or even below cost"
They don't. Walk into any JCP and look at the sales areas with garments for $2.00 - shorts, shirts, etc.
Kohls has a great business model with their discounts and coupons. JCP will do well with the coupon business model. They are not Macys, so why try to compete at that level. Go to where the money is...JCP on road to recovery and will be the next BBY stock in next 3 months.