News

J.C. Penney bringing sales back

June 6, 2012

After seeing a sharp decline in its sales, J.C. Penney Co. Inc. has decided that "sale" is no longer a bad four-letter word.

As part of a rebranding strategy by CEO Ron Johnson, the company had been trying to steer shoppers away from sales and coupons, toward "month-long values." It also tried to communicate that its "everyday pricing" cost less than a sale and a coupon. Consumers, however, weren't buying it.

Johnson admitted Tuesday at a Piper Jaffray investor conference in New York that he now realizes the company didn't communicate the campaign well and ended up confusing shoppers, according to a story in Reuters.

"We're moving away from the word 'month-long value' because no one really understood that, to calling it what we intended to do, a sale," Johnson said.

Penney's shares were down 1.5 percent to $24.90 Tuesday. They have fallen 42.3 percent from a 52-week high in February.

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