Can Ron Johnson Bring Apple Polish to J.C. Penney?

J.C. Penney Gets Apple-Style Makeover

There is a J.C. Penney at my local mall, and I was surprised when a Sephora section was built in the middle of the store. This was a massive attempt to reinvigorate the image of an aging brand. Now that Ron Johnson, most recently an Apple retail executive, who also spent time at the now defunct Mervyn’s, has taken over, radical changes are underway – logo, layout, and pricing. I read about this strategy in both my local paper, The Orange County Register and The Wall Street Journal.

According to the WSJ, the new logo is “designed to evoke an image of Penney as representing Americana and ‘fair and square.’” Wow, that’s some heavy messaging for one little logo to convey, but that is just the beginning. The new layout and pricing will really blow your hair back.

The “store within a store” concept, a la the previously mentioned Sephora, will be the new layout. Again, from WSJ, Mr. Johnson’s plan “involves carving stores into a warren of specialty shops, turning the high-traffic center selling space into an entertainment and hang-out area, and eschewing constant ‘sales’ in favor of low prices every day.” The myriad private-label clothing will be reduced, but one of my favorites, Liz Claiborne, will survive the cut.

The pricing structure is a simple three-tier strategy. There will be “Every Day” low prices, “Monthly Value” discounts on select merchandise, and then the “Best Price” clearance deals. The “Best Price” deals will be available on the first and third Fridays of the month, which is when many of the store’s shoppers get paid.

Final items of interest: Ellen DeGeneres is the new spokesperson, and 14 million customers will receive a colorful catalog highlighting the “Monthly Value” merchandise in the mail.

This is definitely a developing story that I will be watching!