JCPenney's Ron Johnson: 'Customers Don't Get Our Pricing Strategy'
On Tuesday, JCPenney CEO Ron Johnson presented on the company's Q1 earnings and its ongoing strategy in New York City. This was right after the company announced that it missed sales expectations by 15%.
One big problem is that customers don't get the new pricing strategy, which it started rolling out in February. A lot hinges on this.
"Our marketing isn't doing the work. It needs to communicate pricing strategy" and bring in more traffic, he said. "We've got to get our pricing across."
"Coupons were a drug, they really drove traffic," Johnson said. "[Customers] need to understand the value we're offering."