The Case For JC Penny

I love JC Penny. JC Penny stock helped get me through college without needing a loan. That's right, both me and my brother never had college debt due to smart-at-investing parents. Hugh got Budweiser, I got JC Penny we both got a lot of other stocks too. Josh didn't have debt either but about halfway through had to switch to working full time and limiting credits to afford that.

But back to JC Penny. It's Back-to-School time and as someone who's always loved shopping, I thrived on this time of year. I was never popular but there is something about back-to-school that was great. Here's probably why:

1. My birthday is September 17th so it means my birthday is close and I still love birthdays I'll be 32.
2. Sept 1st has always been my definition of the 1st day of fall which always felt more like the start of a new year. (Decorating day fall and September YAY!)
3. Favorite classes like dance started again and I wanted to get to know my new teachers.
4. Hope that this year will be better/just as good
5. New routines start, some similar each year, that will be there most of the year. It was comforting

My mom and I use to love to shop together, it's when we bonded, and for Back-to-School cloths one stop was ALWAYS JC Penny (probably because of the stock thing). I always found lots of things I like and that has only strengthened with Josh and Zach. You know my style, light denim bottoms with solid color tops. In my Decorating Day post I talked about my seasonal wardrobes (changed on seasonal decorating days like Sept 1st I'll look different) but the basics is solid color tops and sweaters in varying sleeve lengths. For me that means St. John's Bay from JC Penny or Sonoma/Croft and Borrow from Kohls. I found out tonight that St. John's Bay is being renamed JCP. But it was always the store brand for adults and will continue to make the shirts I buy.

I still shop in both places based on price. JC Penny used to be a little more expensive until sales. Now they are cheaper or the same price with their new regular prices compared to Kohls regular price plus 15% off coupon. At least on the stuff I buy. Josh wears the SJB Mocknecks or Polos to work. Zach likes the Gold Short Sleeves Arizona Polo I got him for the fall for dress occasions. These are examples of the many things that fit our tastes and needs like a glove.

I read that the problem is a certain amount of confusion for what the pricing is. They might still tweak it but here it is:

1. Everyday (40% off what used to be the regular prices are now the regular price)
2. Sales (they bounce between names but some items go on sales each month, logical stuff)
3. Clearance (once named Best Value it is a clearance)

The confusion that has most likely led to the loss of sales is the lack of coupons. Most people feel like they aren't getting a deal without coupons and seeing a percentage off sign over certain racks. Tonight we replaced a stained work polo for Josh with a clearance shirt regularly $12 but the clearance tag said "clearance $8". Works for me. The sale price is clear instead of having to do the math about what the real price would be after a certain %. It takes the work out of shopping.

And for me there is the difference, coupons. Unless they don't have a one time use requirement and are ALWAYS kept at the register, they are useless. JC Penny has saved a lot of trees this past year after all the coupons they stopped in exchange for these lower prices. The same prices we used to pay when combining sales and coupons only now we don't have to put in the effort. We all work hard why would you purposely WANT to do unnecessary extra work for shopping. It takes some of the fun out of shopping for me.

But there are people that are addicted to shows like TLC's Extreme Couponing and like to try what they see on the show. There are people that consider the couponing thing like a hobby. They feel they are saving more but I've sat down and done the math and really you aren't saving more most of the time, if ever. Because the regular prices are highly inflated to begin with at the stores that feature these things. I'd rather get a St. John's Bay cable sweater for regular price of $20 (actually I got a few in clearance recently at $10 each) then see a regular price as $32 and after a sale and a coupon pay $22. Some might see that as "Wow I saved $10" I see it as "all that for only $10?".

The show Extreme Couponing has started a fad but that effects retailer's bottom lines and soon, actually it's starting already, these places will tighten the rules to still make a profit as more people try what they see on TV. One standard rule is no more then one coupon per purchase which many people, including me, counter with doing multiple purchases. The next step will be slowly not accepting manufacturer's coupons but offering ones of their own with limitations such as printing customers names on them and limiting one per customer. Their own coupons will probably get more stingy or specific too. In fact, as this trend increases more companies might try a modified version of what JC Penny is doing now hoping it will work. Customers might like coupons but if you're not profiting then you find other ways and the less places that accept coupons, the more likely you are to reconsider JC Penny's new model.

Another concern has been their typical fashion of "frumpy". Yes, Liz Claiborn and similar brands are frumpy, but there are people who like frumpy. Personally, I like Worthington for formal occasions and, St. John's Bay/Arizona for most others. There are other nice brands and they are experimenting with bringing in a variety of designers.

http://www.huffingtonpost.com/2012/06/09/jc-penney-small-town-stores_n_1575620.html

I'm the wife/mother. Like most, I make ALL the financial decisions for the family. I'm the type of customer usually targeted since my loyalty can add up in profits and the same is true for others like me. So with that in mind these are the changes I would make if they hired me to fix things (yes, I would take that job including firing the buyers who never order enough mediums but that's true for all stores). I minored in Management with a focus on Entrepreneurship and did a business plan as part of my senior project. I also worked in retail for 5 years, one as an assistant manager before the company went out of business. We heard what customers had to say, if they listened to us they wouldn't have gone out of business.

1. Bring back coupons but with limitations
explanation: The one complaint I hear most is about the lack of coupons. Like I mentioned, people like them. But this is the best way to handle it. They already have sales the first and third weekends of the month. What they should do INSTEAD of putting items on sale is for those weekends offer 10% off the entire purchase for those weekends only. Friday thru Sunday. Mail out coupons but have them be reusable and keep one at each register for those who don't have them with them. Even if the rest of the month is slow that should help the month bottom lines.

2. JCP Cash
explanation: this is wildly popular with Kohls and it's easy. For the second and fourth weeks of each month give opportunities to earn JCP Cash. Same as Kohls. $10 for every $50 you spend. Have them only be valid for the following month but the whole following month. Example: You earn a coupon next week, you can only use it from Sept 1st - Sept 30th. It's a way for people to be motivated to spend more and an excuse to shop. With their current prices that $10 could go a long way. Any change from that $10 could be in store credit form to avoid loss of actual cash.

3. An Organic Line
explanation: I might have my issues with Organics but there are a ton of people who will only buy if if the word "organic" is on it. It would be the most expensive but, if kept reasonable for organic priced, this could go over big. I'm not just talking organic clothing for everyone. I'm also talking kitchen linens, bed linens, bathroom linens, pillows, ect.... if it can be made organic, carry it. By having a line like that it shows people they care so customers can feel like they shop at a responsible place. They key is to use the word "organic" because words like "natural" or "green" sound like a sales pitch but "organic" sounds genuine.

4. Expanded Hours
explanation: people are busy. If you open at 9am and close at 10pm even on Sundays people are more likely to be able to get to you while searching for the best price on their needs. It fits better into busy lives.

5. Reunite Store and Internet
explanation: the Internet should be a reliable place to see when things are in stores, what they will cost in stores, and to help with price comparisons between companies. Online should reflect what the store experience will be.

6. Transfers
explanation: They currently don't offer interstore transfers but they should adding the cost of shipping which is determined by what the shipping cost would be for it if ordered online. Some items aren't online or in local stores but if a store in California has what I need then I don't mind the added shipping cost to get it. Here's they key, limiting the size of the items transferred. If I order a sweater or a shirt (sometimes more) it might ship UPS or FEDEX to start but it usually arrives in the mail. You can't transfer a couch but why not curtains?

7. Order Store Goes Home
explaination: Another Kohl's popular thing are these kiosks where with Kohls.com. If you order on one the item ships to your house for free. JC Penny doesn't need kiosks but why can't customers order from the registers in the store and have the items ship to their homes for free? Currently, it's only order in store ship to store for free but it would probably cost the same and be more customer friendly to have it ship to their homes for free if ordered in the store.
These are all things that make the shopping experience easier while fulfilling what the average customer wants. A problem all stores have is access to a list of ordered but not arrived yet items. That's mostly annoying for impatient shoppers like me.

When I step into JC Penny I am filled with childhood back-to-school memories. As I walk around I see things that I think loved ones would like, such as the shirt that just stood out to me for my niece as a birthday gift (Sept 24th). The local employees are very nice and after Susie helped me with my Hurricane-Irene-delayed-ship-to-store order I was thrilled to hear she is now the general store manager. She still greets me and mentions that. I talked about this service in my birthday post from last year (post below).

http://homewithmommy-fran.blogspot.com/2011/09/my-birthday.html

I also see things we need that fit into our tight budget. Macy's might offer beautiful things but forget about it when you see the prices even with stingy sales and stingy coupons. JC Penny is a comforting place and as I see things for all ages I think about what represents people in each of those stages. I get sad when I read of JC Penny's struggles. I'm not this attached to most stores but there is something about JC Penny that fills me with memories and hope and makes me want to root for them to succeed. They seem to be in a "try and see if this works" mindset and customers sense that. Instability leads to lack of confidence. They need to rediscover their confidence. I plan to email this link to JC Penny. I hope they see my suggestions and take them seriously. When I'm stressed out and need a break JCP is where I go. I've turned frustration into happiness there many times, even when I don't buy anything.

While some of their things are 'frumpy" not all are and it's an unearned label. It breaks my heart as I read comments on JC Penny articles from people who hate their local store or the company. Maybe that particular store needs new employees but mine certainly doesn't. They are better at answering my color specific questions then the customer service online people. Messy store, that's from other shoppers the merchandisers bust their butts cleaning up after them that can't be held against the company. I hope their new designer lines help the "hip" factor. It's still a work in progress I just hope it doesn't loose the qualities I love about it.

This post confirms it's Zach's favorite store too:
http://homewithmommy-fran.blogspot.com/2011/09/zach-has-decided.html