JCPenney Launching New Branding Effort
Published January 27, 2012
In an effort that it says will "re-invent the in-store experience," JCPenney recently announced that it would be launching a branding campaign that includes restructuring its location strategy and rolling out a series of scheduled sales rather than offering discounts on an ad hoc basis.
The company said beginning on February 1, it would move away from the giant department store model to establish 80 to 100 brand shops while also making strides to combine digital and in-store experiences. The rebranding includes the introduction of a new logo, a partnership with Ellen DeGeneres and a monthly direct mail style book.
"We are redefining the JCPenney brand so we become a store for all Americans, by offering an experience they cannot get anywhere else," stated Michael Francis, JCPenney's president.
He added that the initiative would begin with a focus on customers, ending the "barrage of promotions and undifferentiated shopping experiences they have become used to." Francis noted that an "entirely fresh" replacement would be "evident in every aspect of our store - new brands, new marketing, unique attractions and much more," he added.
Direct Marketing News reports that the company chose to whittle down its sales strategy from hundreds of sales running at odd times to a set schedule of daily, bi-weekly and monthly offers. Company CEO Ron Johnson told the news source that the customer was being inundated with sales, including weekend events, online only sales and daily discounts. He said this could be confusing for deal-seeking consumers who wouldn't know when the best time to buy was.
This sales strategy could set the company apart from other retailers, many of whom took a hit to their holiday season profits because they offered too many discounts.