Back in the 1970s my late father, an Arkansas-born retail lumber company manager, told me, proudly, “Penney’s is my store.” There wasn’t a hint of irony in it, though even back then the hipoisie had long since spurned Penney’s as hopelessly “square” (for lack of a better word). Recently, however, Apple store whiz kid Ron Johnson has swooped in from California with a major-league salary ($53M or so) and grand plans to transform this seeming relic of a bygone era into “America’s favorite store” because … Well, just because he’s Ron Johnson, I guess.
But, Penney’s is still a strong brand in Middle America! its backers insist. So what does Johnson do right off the bat? He oversees a very aggressive marketing campaign with an in-your-face gay theme, even though, in retrospect, Middle America probably was the last place that would look kindly on such a campaign. He announces he’s scrapping the store’s longtime pricing structure and implementing a simpler one. I’ve read the details of this new structure several times, however, and it seems even more confusing than the original. In the wake of such moves Penney’s sales have sagged, like its stock price, and Johnson has just given his new president the boot.
Such foul-ups aside, has it ever occurred to anyone that some stores and brands simply outlive their relevance, regardless of who’s running them? I haven’t heard anyone say, “Penney’s is my store,” in a long, long time.
21 comments
Being from “middle america” their advertising campaign didn’t bother me one bit. I think it bothers the Southerners more. Penney’s isn’t what it used to be, but then again, I grew accustomed to Marshall Fields growing up and that’s long and gone because our fine department store mentality is dead. No more of “Give the lady what she wants”.
However, I agree with their confusing pricing system. And that, and the end of the day, is what drives the customers away. This every other Friday, no coupon, sale system just makes me feel like I’m not getting a good deal. Additionally I have a problem with the quality of merch.
I’d pay for quality (Fields, Bloomingdales), otherwise, I want a bargain (Old Navy, Penneys, Kohls)
You may want to re-calibrate your gaydar to the twenty-first century if that’s what you consider an “in-your-face gay theme”.
I stepped into a Penny’s store last Friday in Houston at The Woodlands Mall. I was killing time waiting on my wife to get a haircut. I haven’t been inside a Penny’s in 10+ years. The merchandise was fine. The prices were fine. But there is no reason for me to go back. It’s definitely not hip, yet neither am I. And I didn’t see any gay couples shopping there either. Lots of older women though. When they die, Penny’s dies. Perhaps a new name? Pennyz.
Brands come and go. Penney’s has never given me any reason to shop there. I have not been in one of the stores in 20 years++. I can get on line and see nothing has changed. The one thing I would buy is a washer, dryer etc BUT there are better prices available than Penneys. “Mr. Apple Guy” needs to give the customer a reason to shop b/c the mdse. and pricing suck. Pennys is beginning to fade away much like Sears and K Mart. I do not know ANYONE who shops there but I know lots of people who shop both Wal-Mart and Neimans.
“In your face gay theme?” This sort of naive/outsider analysis is like my Dad looking at an Apple ad and saying that it doesn’t appeal to him. And it shouldn’t. It’s not supposed to appeal to him. And I’m making assumptions about Glenn’s age based upon writing style but it’s not supposed to appeal to Glenn’s demographic. JCP needs new generation spenders: younger, more diverse, etc.
The bottom line is that JCP has to appeal to a wider (and more accepting) demographic. The adjustments to logo and catalogues and ads is minor compared with radical pricing changes, upcoming merchandise changes, and huge store design changes–which will take years. This is stage one of one hundred–at least if the Board sticks with the man and the plan. The numbers and results are ugly thusfar–but JCP is receiving radical treatment over the long-term to save a dying patient.
Michael Francis got about $10 million for 9 months work and Ron Johnson is in for $50 million and won’t last much longer. The marketing campaign was directed at 1% of the population. I would have told the board that was a dumb idea and only charged $6 million leaving them with $54 million to find management with a brain. What are the odds that Ron Johnson is featured on the cover of D CEO?
Penney’s was dying LONG before they instituted what Glenn considers “an in-your-face gay theme”. Correlation is not causation. But that doesn’t fit the agenda, does it?
The theme is not “in-your-face gay.” You’re flat-out wrong about that.
The “gay dads ad” was 1 1/2 pages of a 96-page catalog, which also featured an Asian dad, a red-headed white guy dad, a wheelchair-bound Hispanic, a black dad, and on and on. The theme is inclusiveness and diversity.
Steve and JCPenney Dad: Wrong. We’re talking context here. DeGeneres and the “two dads” ad would not be in-your-face if the client were Showtime or Absolut. When you’re flacking for an old-line outfit whose backbone clientele is white-bread Middle America — and there’s nothing wrong with white-bread Middle America — it is in-your-face.
I grew up in white bread Middle America in the 70s, and some of the ads on TV and in magazines had black and Latino people. Some television shows too. Today, some ads have gay people. Some television shows too. Get over it. People all over white bread Middle America are gay and/or have gay people among their family, coworkers and friends. The trouble with JCPenney IMHO is the ugly dated clothes. I was in there a couple of months ago and saw mostly clothes targeted at the grandma demographic. Target and Kohl’s do a better job of stocking clothes for the under-60 market.
Such foul-ups aside, has it ever occurred to anyone that whiz kid CEOs that swoop in from California with major-league salaries and big ideas for turning business upside down should be dragged out into the parking lot and shot by building security?
I must be the only one in America who went to Pennys because of the new pricing and ad campaign. I hate coupons and pretend sales events. I bought a bunch of cute shirts at $20 a piece. It’s not high fashion, but better for me than Target or Kohls.
They should really think about doing a street style blog featuring real, stylish, young women (21-35) wearing clothes from JC Penny among the rest of their stylish wardrobe pieces. Create a Pinterest board with real women incorporating JCP pieces into their wardrobe for work, play, dates, etc. Young women have a ton of market buying power (especially unmarried, childless women who are free to spend their disposable income on mostly themselves) and for this demographic the Internet/social media bloggers and tastemakers have a lot more influence than a 30 second ad they leave the room for when watching their favorite show on Hulu.
@Raquel – excellent idea. I hope someone from JCP is reading this.
Bill Marvel: I am shocked –shocked, I say! — by the violence in your suggestion. You’re in favor of summary execution for businesspeople?
Surely, being tied to malls is a detriment. I’m no longer a target demographic for anyone, but I do spend money and I can buy my suburban dad uniform at Stein-Mart or Jos Banks without the hassle of the mall. In my head, I see the JCP demo as being the Applebee’s and Chile’s demo, and whenever I eat at those places it seems that most people there build there wardrobes at Love’s Truck Stop and souvenir t-shirt shops.
That sounds way more condescending than I mean to be, my family comes from poor Oklahoma dirt farmers, but my grandparents and parents all had certain expectations of how one dressed at church, and going out to eat, and in public in general. Our clothes didn’t have ponies or alligators on the labels, but they were clean and the shirts had collars, the jeans or pants had no holes and were made of sufficient material to cover one’s undergarments.
I’m old.
In adversity is opportunity, and JCP has an enormous opportunity to think differently and create a new experience for all shoppers. The categories in multi-brand shops have been largely unchanged for decades (e.g., petites, women, men, shoes, watches/jewelry). Why not re-work that? I propose sectioning the merchandise in more fun and sometimes oft-changing ways: “Church,” “Saturday,” “Helping a Buddy Move,” “Date Night,” “Gardening,” “Building a Barn,” “Celebration After Barn Built,” “Big Job Interview,” “Happy Fun Chic” . . . They should aim for H&M prices, but with Americana appeal.
Why not?
Glenn,
What was I thinking? I seem to have forgotten everything I learned at my father’s knee so many years ago.
Having rethought my intemperate and violent remarks, I now believe that whiz kid CEOs that swoop in from California with major-league salaries and big ideas for turning business upside down should be courteously escorted to the parking lot by building security and be handed a long-term contract with provisions for a golden parachute. As they are about to sign, they should be run over by the company limousine. Then they should be shot.
I’ve spent thousands and thousands of dollars at Penneys over the last 20+ yrs. I bought from the catalogs that frequently arrived by mail and from the website. Occasionally, I hit the store, but love the convenience of shipping. This year, I didn’t buy a thing. Tried, but I couldn’t. The selection wasn’t there and the reformatted website was frustrating. I got the scenario-type catalog and was confused. The basic catalogs that reminded me that I needed new sheets, new running shoes, a stockpot, an extra long tie for an extra tall son, oxford shirts for Big and Tall size husband …stopped coming. Never a coupon shopper, I hit Penneys for the basics when I needed them -on sale or not. The quality was good . I could count on them for selection, special sizes of clothing and shoes and speed. For trendier items I went elsewhere, but basics are basics. Time is money and who wants to troll through categories titled “Church” when all you want is new mattress pad for the lake house, a panini press or Big and Tall size khakis?
Why do people like Ron Johnson make enormous dollars? Oh yeh, it is to match the size and scope of his ego. He has a lot to learn about how shopper’s minds work. It is all an illusion Ron, we know that. But, it is like dope, they want coupons and door busters and all of that crap. So give it back to them you moron. You are not listening to the customers. You are also being discriminatory in my opinion by getting rid of the maternity, senior brands, and the like. Do you think the younger folks want to shop at JC Penny. Most only do it when they are dragged in by their parents. Wake up you ass.
Ellen DeGeneres is a big JC Penney fan now! She’s laughing all the way to the bank! Fools!