US retailer J.C. Penney unveils transformation plans

At an event yesterday in New York, US retailer J.C. Penney unveiled major plans to transform itself into ‘America’s favourite store’, with a presentation by Ron Johnson, the Company’s chief executive officer, and Michael Francis, its president.

The blueprint for the future will see the retailer change the J.C. Penney shopping experience by fundamentally re-imagining every aspect of the Company's business.

The initiatives that begin on February 1 include: a new pricing strategy called Fair and Square, which includes three types of prices – everyday, month-long values, and best prices; new corporate identity; and plans to make-over the entire fleet of stores by 2015.

The biggest transformation will be the reinvention of the in-store experience, with plans to create a ‘Main Street’, where the entire store is merchandised in a series of 80-100 brand shops, and the retailer expects to feature 30 new and transformed brands by fall 2012. In addition, the store will also feature ‘Town Square’, a replacement to the traditional retail centre core of a department store offering a series of services for customers.

Heading up the make-over is a new corporate identity for the brand, which includes a fresh logo that evokes the American flag and its new Fair and Square pricing. This joins the brands new marketing strategy which will be fronted by TV personality Ellen DeGeneres who was announced as the retailer’s brand partner.

"The department store is the number one opportunity in retail today. We are going to rethink every aspect of our business, boldly pursue change, and create long-term shareholder value, as we become America's favourite store. Every initiative we pursue will be guided by our core value to treat customers as we would like to be treated - fair and square. We will create tremendous excitement through monthly promotions that are in sync with the rhythm of our customers' lives. And we will transform each and every J.C. Penney store over the next four years," said Mr. Johnson.

Mr. Francis added, "We are redefining the J.C. Penney brand so we become a store for all Americans, by offering an experience they cannot get anywhere else. This will start by freeing consumers from the barrage of promotions and undifferentiated shopping experiences they have become used to and replacing it with something entirely fresh and new that is evident in every aspect of our store - new brands, new marketing, unique attractions, and much more."

Images: J.C. Penney external and internal store vision from February