Business has been on the upswing at J.C. Penney.
While the disastrous tenure of former CEO Ron Johnson still creeps into conversations about the company's attempt at a turnaround, most of the current focus has been on Penney's improving sales. The chain's same-store numbers were up 3.9 percent in Nov. and Dec. when many of its department store brethren were in negative territory.
A Dallas Morning News article revealed that Penney was looking to build on its recent momentum with a new tagline "Get your Penney's worth" scheduled to launch on Sunday.
The new slogan is tied to a new campaign where Penney will offer some of its basics as part of a one-cent sampling program.
The program is not just limited to items Penney is looking to clear out. Instead, it will include items from popular private labels such as Penney's Arizona line. Penney also plans to do its own spin on BOGOs with buy one and get a second item for a penny deals.
As The Dallas Morning News article points out, Penney's new campaign and merchandising approach takes a page from grocery retailers. Mary Beth West, chief customer and marketing officer for the chain, said grocers often back up advertising of a promoted item with prominent secondary displays in the store.
"We're doing the equivalent of an Oreo display," Ms. West told the paper. "We know that clothes that are featured on mannequins sell." The chain's stores will include a rack of the promoted item behind each mannequin to encourage purchases.
Penney's new price promotional plan fits with an increasingly aggressive stance under CEO Marvin Ellison. Recently the company announced a test of major appliance sales at a small number of stores. While not universally hailed, many saw value in the test considering Mr. Ellison's background at Home Depot.
Speaking of the test, Mr. Ellison said his former employer and other home improvement chains would not be Penney's chief rivals should the decision be made to move beyond a pilot. His response (via The Dallas Morning News) left little doubt that his main target would be Sears and its struggling retail business.
"We're a mall retailer, and we're going to compete in the mall, " he said.
- J.C. Penney planning to sell items for a penny as part of its new marketing - The Dallas Morning News
- J.C. Penney Christmas Sales Sparkle Compared To Industry Results - Forbes
- J.C. Penney testing the sale of major applianes in 22 stores - The Dallas Morning News
- Will Penney's appliance test put a fork in Sears? - RetailWire