Last week The Huffington Post released an article titled: J.C. Penney’s Sales Plummet: How Couponing Moms Cost The Store $55 Million.
My first thought was, “Oh crap, what did we all do wrong now?”
But once I read the first paragraph, it is easy to see who cost JC Penney $55 Million, the new CEO Ron Johnson, his $1.5 million dollar salary and $50 million in stock.
Ron Johnson, the new star CEO of J.C. Penney, wishes that couponing fanatics would just listen to him already and stop fussing with those little scraps of paper.
“Coupons were a drug,” said the CEO on Tuesday evening at a conference with analysts. Earlier that day, J.C. Penney announced abysmal results for the first three months of this year, with sales plummeting 18.9 percent at stores open at least a year. Net losses for the period were $55 million. Executives blamed the results on the departure of deal-hunting shoppers after the company changed its pricing strategy in early February to abandon coupons.
“We did not realize how deep some of the customers were into this,” noted COO Michael Kramer about couponing. “We’ve got to wean them off this and educate our consumers.”
NO. YOU need to be educated Mr. Johnson, that your base customer does not make $1.5 million a year and uses coupons to purchase the things that they need. People who use coupons are rewarded for their work by getting a discounted price. WE ARE EDUCATED and don’t pay retail for items we can get cheaper other places. SO WE ARE SHOPPING ELSEWHERE!
I don’t have a problem with CEO’s making a lot of money. But when they make that much money and tell me that *I* need to be educated on how to shop and what a joke coupons are, it makes them look out of touch.
Under Ron Johnson’s watch and new marketing strategy his company has lost $55 million dollars. Then he BLAMES the people that were driving the sales to the store in the first place. The middle income, coupon using, MOM’s who make the decisions in the home and do the shopping.
WOW. Pay me $100K and I can fix this problem for you JC Penney’s!
This is what you need to do:
- Get rid of Ron Johnson.
- CLEAN UP YOUR STORES, they are dirty, dark and old.
- Bring back coupons! Bring back the $10 off $25 and the $10 off $10 on your birthday. Offer discount days, and coupons on clearance items. These things WORK.
- Make returns easy.
- Start making QUALITY clothes a priority.
- Hire some designers to make the clothing purchases FASHIONABLE! Stop buying clothes that were not even popular in the 80’s.
- Hire employees that want to be there, and take the time to train them.
Sheeseh, but what do I know. I am just a Mom who uses coupons….
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Amen! Have not shopped in Penney’s since the coupons ended. They now seem like Sears!
Ohhh! Sears! You tell them!
You tell ’em girl !!! We’ve got your back!! 😉
I used to shop at JCPenney all of the time, especially when I’d get those $10 off coupons!! They have nicer clothes that fit my kids better than other brands. I used to go at least once a month, if not more, but now, I’ve not shopped there in 2 months!
Doesn’t surprise me coming from The Huffington Post. I’m glad you posted this so we can be aware of it. We all back you up on this, Tiffany!
I used to shop at JCPs without coupons all of the time. Their clothes are crap now. Even Walmart has a better quality and selection!
talk about out of touch, this CEO must not know the base JC Penny Customer-he sent us all running to Kohl’s
You hit the nail right on the head with this, Tiffany! I live directly across the street from a JCP, and used to stop in there nearly weekly, to shop a sale or comb through the clearance racks. Now that they have ditched the coupons and the clearance racks have nearly vanished in the stores, I have taken my business elsewhere!
I agree! Living in rural areas I was a loyal shopper until they stopped the coupons, my shopping has almost become non existent now! Boo on the new policy!
We all should send e-mails to them, seriously!! I have not been there since they stopped with the coupons…heres a thing called making a customer happy. How about low prices everyday AND coupons. seriously.
You go girl!
You said it so eloquently! It so true. I used to shop there all the time. Now prices are up, quality is down, and employees are cranky.
And there is one more thing dragging down JC Penney’s profits – those slick new square mailers they send out monthly, if not more often. Those are outrageously expensive to produce, yet provide absolutely no reason to shop at JC Penney. Am I supposed to rush down there to buy a $24 pair of shorts for my child just becuase its in a over-produced mailer? They are sooooo out of touch. They don’t have a clue who their customer base is, or rather, was. With this joker at the helm they are headed for bankruptcy!
I’ve been in JCP recently, and I only shopped the “Best” deals — My mom got a sweater for $4 that was originally $54. I’ve found some good deals (in my opinion) there since the price change. Of course, because I AM frugal, I won’t buy anything that’s an “everyday” priced item and will only buy the “best” items because that’s their version of clearance. What this dude doesn’t get is even with his new “awesome” pricing plan, WE’RE STILL GOING TO BE FRUGAL, and we’re still only going to buy items at the lowest prices. I use to shop in penny’s a lot because their sizing (I’m a tall), but now that they’re practically taking that out of the stores, too, I might only visit if I need something.
Enough said… Take that JC Penney… It’s more like JC Dollar… Let’s take all the consumer dollars…
They really need to learn something from Kohl’s. They carry GOOD quality merchandise and their stores don’t look like they were raided by a mob just before you got there. I agree with you, JCP stores are so dark and sad that they make me NOT want to walk in there. And honestly I have never been a regular customer at JCP but now it has seriously started to look like Sears!
I couldn’t have said it better!!! I have a JcPenney behind my house and have gone the 1st Friday and 3rd Friday and have found absolutely nothing for $2 and their toddler clothing is not fashionable!! Kohls is a little more down the road but I will go out of my way for it, they have much better clothing, even Walmart!!!!
Yep, I haven’t been back since they changed their sales strategy. I TAKE MY MONEY TO KOHL’S AND TARGET. And after what Mr Johnson has said, I will NOT go back to Penneys until he’s gone.
I am with all of you! Seems like the CEO thinks that we are going to buy into his ridiculous theory. You know there are some female and male execs that are banging their heads against the wall awhile carrying out this new marketing plan. New CEO will be out by the end of the fiscal year which is October. I with my uneducated masters degree self have not stepped into the store since the new pricing began. How you like them apples, JCPenney? And now I won’t be back until they get a better educated CEO!
Well said! Honestly, I can’t figure out how people *THAT* dumb end up CEO? I have never bought anything at JC Penny’s, always found their stores dumpy/dirty and full of low quality merchandise. I guess I won’t be shopping there anytime soon!
I ws in college and bought a hideous sweater there because it was $.77
… it was so dark I obviously couldn’t see how bad it looked 😉
Go Tiffany!!
I need to be educated?! What a poor choice of words. No thanks, JCP, my Master’s degree and I don’t need you to clothe my family.
I can’t believe this guy said WE needed to get “EDUCATED”. I’d like to see him try to feed and clothe a family of maybe 10 people for 3 months in a row using just a regular persons salary. Then HE would be the one recieving an EDUCATION for sure.
I’ve seen a TV show where the CEO’s pretend to be a new low-level employee and work side by side with the regular employees. They usually come out with a whole new respect for the regular employees. I think this guy should go on that show and receive hes “EDUCATION”.
My daughter works at a JCPenneys and she says even the employees are shaking their heads at what he is doing. I mean really what does an Apple executive know about clothes and shopping.
Amen Sister!
love ya Tiffany. You tell them. Apparently some of the big wigs have gotten out of touch with reality.
You were spot on with the quality of clothing comment. I am into fashion and I buy a lot at Macys and Dillards because although coupons are few the quality is better-id rather pay $20 for a top on clearance at Dillards that is of designer quality than one of JC Penneys cheap items that shrink or tear after a couple wears. I actually think their new campaign copies Target, only difference is I can get comfortable and fashionable clothing for cheap, and they have online coupons at Target.com. Poor judgement on JC Penneys part.
This guy is seriously out of touch with the rest of polulation. Everyone is trying to save money in this economy, that’s why coupons are such phenomnon. Bye bye JC Penny, never shopping there again.
Go Tiffany!!!!!!!
Seems he needs EDUCATED–knowing he changed the policy and his sales are down–sounds like simple logic to me. I have not shopped there since they stopped with coupons either. I want a discount on what I want, not what they want to mark down.
What this Johnson the new CEO of Jcpenney was thinking when all the retailers (starting with food, drinks, furniture, office supply) offer coupons
and other incentive to bring people in the store???
In this bad economic times, the coupons saved many families from falling
in disperation. He should to know that a coupon will bring people back to the store and they will buy more than they will plan…so sales would be good. I personal would shop in Jcpenney 2-3 yimes/month…Now I didn’t shop in the store from the time this Johnson took the job doing no good for the company but….perhaps he is doing good for himself with a “fat” salary and milions in the stock…who by the way …can go to the drain if he is not improving the strategy to bring people back to shop in Jcpenney.
“wean” us off coupons??? wth??? I am not a child in need of weaning. Sounds like this ceo needs a couple months of only having a few hundred bucks per month to feed a family and make sure they’re clothed properly. I have five children still at home, and this is my life. I cannot go out and buy my son a $35 shirt and think “what a deal!” . I’ve never professed to being a feminist, but that phrase ““We’ve got to wean them off this and educate our consumers.” is offensive.