J.C. Penney rolls out new logo, prices

J.C. Penney has a new look, a new pricing strategy, a new CEO and a new philosophy - and they're not particularly modest about their expectations.

"J. C. Penney Company, Inc. is taking the first steps on its path to reclaiming its birthright and becoming America’s favorite store," read the opening sentence of a press release Monday about the initiative.  The changes debut on Wednesday.

The company, coming off a string of lackluster sales results, is revamping its approach under the leadership of Ron Johnson. He's the man who brought Apple stores into being, along with former CEO Steve Jobs.

The new JCP logo

Some of the changes are cosmetic, such as the company's new square logo, meant to go with the chain's new  "Fair and Square" approach. Changes to pricing are more substantive. The company is moving away from promotions, coupons and steep, short sales to a simplified, three-color strategy. Red label items will be "everyday" low prices, white labels will indicate month-long discounts, and blue labels will be located on "best price Friday" items.


"Three ways to price our merchandise, and no more," J.C. Penney said, in its press release. 


Johnson is also attempting to de-clutter the stores and make them cleaner-looking. There will be no more tables in aisles, and 70 percent fewer signs. Anything will be accepted for return at any store, J.C. Penney said, and stores will change monthly "to make it fun and fulfilling to shop."


Some analysts have hailed the move, while others say it poses a risk to J.C. Penney: If customers accustomed to sharp two-day sales with eye-popping 70 percent off headlines, will they respond to Red, White, and Blue? 


There are more than 1,100 J.C. Penney stores nationwide. In the Charlotte region, there are five stores, at Carolina Place mall in Pineville, Eastridge Mall in Gastonia, Carolina Mall in Concord, the Rock Hill Galleria and Monroe Crossing. 


So, what do you think? Will bringing in an ex-Apple guru, cleaning up the stores and simplifying the prices lure you to J.C. Penney?

J.C. Penney bombs Black Friday

While other retailers including Macy's, Target, Wal-Mart and Best Buys moved their Black Friday openings up to or even right into Thanksgiving day, J.C. Penney stuck with its usual 4 a.m. opening.

The department store chain was counting on sales from its website and loyal crowds of shoppers to keep it in the game, as the competition scrambled to open their stores earlier to get the first shoppers. J.C. Penney resisted opening as early as its rivals, saying it wanted workers to have the whole Thanksgiving day with their families.

The verdict is in on what effect that had on J.C. Penney's sales, and it wasn't pretty. "The Company noted that its decision to respect Thanksgiving Day for families and open at 4:00 a.m. on Friday, as it had in prior years, adversely impacted Black Friday sales," said J.C. Penney in a press release. "Sales remained soft in-store throughout the holiday weekend."

Sales through J.C. Penney's website on Black Friday weekend will be reported next month.

For November, sales fell 5.9 percent at J.C. Penney stores, totaling $1.74 billion. Sales at stores open a year or more, considered a key indicator of a retailer's health, were down 2 percent.

That's especially bad for the chain in a year when holiday retail as a whole continues to rebound, driven by deep discounts, and Black Friday sales as a whole were up 6.6 percent. And last year, J.C. Penney saw a 7.2 percent increase in its November sales.

So it looks like consumers have voted with their feet and their wallets, turning out in droves for 9 p.m., 10 p.m. and midnight openings and shunning one of the few mass-market department stores that held out for a Friday opening.

Any retailers that consider trying to reverse the trend of Black Friday Creep will have to take note - and the earlier openings are probably here to stay.