J.C. PENNEY CONTINUES TO PAY PRICE FOR DRASTIC CHANGES

By: American Decency Staff

 

J.C. Penney Co. reported a bigger-than-expected loss in the third quarter on plummeting sales as customers continue to reject its move to get rid of blockbuster sales in favor of everyday low pricing.

Many pro-family groups were also offended when J.C. Penney chose homosexual activist Ellen DeGeneres to be its chief spokesperson and featured homosexuals in some of its new advertising.

Friday's report marks the third consecutive quarter of losses and steep sales declines since the mid-priced department store chain got rid of hundreds of sales it used to offer each year and instead cut prices permanently about 40 percent throughout the store. It's a big blow to Penney, which has suffered in recent years as it's failed to keep its stores fresh and its core middle-income shoppers have been hard hit by the weak economy.

The results underscore the challenges Penney's CEO Ron Johnson, the former Apple Inc. executive who came on board a year ago, faces as he tries to change the behavior of shoppers who have grown accustomed in to seeing sales signs of up to 70 percent off. Under Johnson, Penney has been changing everything from its merchandise to its stores. But the centerpiece of his strategy has been to tweak pricing, with the goal of weaning deal-addicted customers off of the kind of heavy discounting that eats away at a retailer's profits.

Read More: http://www.onenewsnow.com/ap/business/jc-penney-continues-to-pay-price-for-drastic-changes

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