As brick-and-mortar retailers continue to ramp up competition with strictly ecommerce operations, they are having to reevaluate how they create customer satisfaction and loyalty.
Recently, nationwide chain JCPenney announced that it would be overhauling its pricing scheme and store layout, Businessweek reports. The strategy, created by the company's CEO and builder of Apple's retail operation Ron Johnson, centers around a three-tier price model that will feature discounts on seasonal items and special promotions on the first and third Friday of every month.
The new layout will include an $80 million per month expenditure on marketing, including monthlong sales events and commercials featuring television talk show host Ellen Degeneres. Additionally, the company plans to continue adding new and improved brands throughout the year.
How well the strategy will perform is up for debate. "Johnson needs to make JCPenney a destination, which it hasn’t been in decades," Craig Johnson, president of Customer Growth Partners, told the source. "He did that for Apple, but now he must do that for a tired mall anchor."
JCPenney is not the only retailer to announce bold moves recently. This month, Target sent a letter to suppliers urging them to become more competitive with online rivals.