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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPenney Makes Free Haircuts For Kids Permanent
NEW YORK (AP) -- J.C. PENNEY'S FREE HAIRCUTS: After an overwhelming response to its free haircut program for kids last month, J.C. Penney will be making the offer permanent every Sunday, starting Nov. 4.
WHAT'S BEHIND IT: The move underscores how Penney CEO Ron Johnson is trying to overhaul every aspect of its business, from pricing to the shopping experience. The retailer is grappling with two quarters of losses and severe sales drops as shoppers have been confused over its new pricing plan that eliminates hundreds of sales events in favor of everyday pricing.
MORE...
http://hosted.ap.org/dynamic/stories/U/US_PENNEY_HAIRCUTS_SUMMARY_BOX?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-09-10-11-54-20
ann---
(1,933 posts)Philly (many, many years ago), the prices and quality were fantastic. They then went the way of Macy's and got out of my reach pretty quickly. I see lots of efforts to fix that NOW in Penney's here in my home town (not Philly).
stopbush
(24,378 posts)Ron Johnson is an asshole who is driving JCP into the ground. The salon staff is getting the worst of it. First, JCP took them off a commission basis and put them on an hourly basis. Then, they institute this stupid kids policy. Giving haircuts to kids is one of the most-thankless jobs there is, what with the crying and the fidgeting around sharp objects - like scissors. The tips are non-existent.
Cosmetologists make their money selling services to their clientele. This move by JCP is actually LOSING adult business on Sundays as the staff has been told to clear their Sunday schedules to handle kids. They're basically using the professional staff AND their incomes as loss leaders to get families into the stores to buy clothes in other departments. There is no chance to up-sell services to kids. Johnson's decision is driving the PAYING clientele elsewhere. My wife moved to a more upscale, independently owned salon and her entire JCP clientele followed her to her new business. Her old JCP salon is now losing its most-talented cosmetologists on a weekly basis.
BTW - the two quarters of losses and severe sales drop happened BECAUSE OF JOHNSON'S POLICIES!! He's the one who caused the confusion among his customers. JCP lost $50-million while paying Johnson $52-million to "fix" its business.
Johnson has already pushed out all of the senior management people who warned him that his policies would destroy JCP. JCP's response has been to shoot the messengers and to double down on Johnson's business-destroying policies.
Johnson will bail out on JCP sooner rather than later with a golden parachute, blaming JCP for its demise while taking none of the blame himself. It will be "they were unwilling to change, blah blah blah."
Asses all.
Ilsa
(61,675 posts)Customers that they should tip the hairdressers as if they were paying full price, or even more. I certainly tip waitstaff for the full price of a meal even though I might have a coupon for a discounted item.
Given the fact that our barber was cutting our kids' hair, I always tipped more generously because it is harder in many ways.
HiPointDem
(20,729 posts)Blue Idaho
(4,988 posts)JCP was in big financial trouble long before the new CEO took over. I hope they can revive this great American brand! They sure seem to be stepping up their support for progressive causes and free kid haircuts could really help some folks in need.
stopbush
(24,378 posts)as flails about from one "forward-looking" policy to the next, hoping something will pull JCP's ass out of the business-destroying fire he's put them in.
This is classic fuck the workers crap. JCP is heading into territory that will make WalMart's treatment of its employees look like pure benevolence.
Blue Idaho
(4,988 posts)One thing is certain - had JCP continued its previous failed business model - they would be bankrupt and all of their employees would be looking for work.
Perhaps you would prefer that.
Jeff In Milwaukee
(13,992 posts)JCP had been in dire financial straits before Johnson took over.
I think this is really an interesting story here -- JCP was all but dead and so they're going to experiment like crazy to find something that will work for an old-school retailer. Normally you can't do this sort of thing with a corporation, and I'm sure the business analysts will be watching this closely to see if JCP learns something new.
stopbush
(24,378 posts)Read the news reports. Johnson got rid of the coupon programs that had been driving traffic to JCP for years. He described the coupons as a narcotic for shoppers, as if there's something wrong with that! If you're a retailer, you WANT people coming to your store on a regular basis.
"Early this year JCPenney tried out a new gimmick: they decided to do away with gimmicks. The original 30-second spot of the campaign contained no dialogue, only female consumers screaming Nooooo!, at signs and advertisements announcing price reductions. No more getting up early for door buster deals! they shouted in spots starring comedian Ellen DeGeneres. No more slashed prices! But most importantly, especially to new CEO Ron Johnson, No more coupons!
Their customers were annoyed with clipping to save, posited (Ron) Johnson, and so the retailer went cold turkey on coupons. But just one quarter into the experimental new strategy, sales have dropped; JCPenney reported a $163 million loss in the first 90 days of the year and executives at the company were forced to link the coupon strategy to a 10% drop in customer traffic. They didnt realize how into coupons their customers really were, said COO Mike Kramer. Johnson was shocked at their commitment to the little scraps of paper.
It seems like Johnson and his team overlooked one critical component in the decision to eliminate coupons from Penneys marketing strategy: the female consumers who make more than 67% of mall purchases each year.
Taking coupons away from a couponer is like taking vodka away from an alcoholic, says Faith Popcorn, a consumer trend strategist and CEO of BrainReserve in Manhattan, who stresses that at this particular moment in time, savings are important to every consumer, from the richest to the poorest, especially where coupons are concerned. Far from annoyed with couponing, she says that weve become a nation obsessed. Everybodys hooked on the things, she says. You just cant make a move like that without asking people firstand he couldnt have asked.
Steven Boal, CEO of Coupons.com, knows a thing or two about the importance of coupons to female consumers: 71% of users on the site are women and hes quick to point out that whether shes the one who presents them at the cash register or not, shes the key influencer in the vast majority of household purchasing decisions. Shes influencing if not dictating every major purchase, he says. From online coupons to store circulars, coupons are a powerful tool for reaching these household influencers and convincing them to try new products. Boal confirms: When theres competition in a market, the retailer that delivers a coupon for both e-commerce transactions and in-store purchases tends to get a higher share of the customer wallet.
But for JCPenney, admitting that the coupon strategy was short-sighted may not be enough to fix their very-public faux pas."
http://www.forbes.com/sites/meghancasserly/2012/05/17/how-jcpenneys-coupon-problem-discounts-women/
This financial disaster is entirely Ron Johnson's creation and fault. Johnson couldn't be bothered to even learn who his customers were. He decided that those "little scraps of paper' were ghetto, and that he in his great wisdom would do away with them. He even made statements that he had to "educate JCP customers" - 67% of which are women from middle- and lower-income homes - on how HIS way of thinking was better than theirs. How fucking condescending can you be?
Ron Johnson - busy creating a "new reality" thought up out of his ass and built on the contempt he obviously holds for JCP's installed customer base, which he is driving away in hoards to be replaced with...well, so far, no one.
Jeff In Milwaukee
(13,992 posts)JCP was (and still is) being strangled out of existence (remember Circuit City? Linens n Things?) just like Best Buy, Sears and K-Mart. Sales were dwindling as shoppers went to on-line retailers and deep discounters. Ron Johnson was brought in pretty much as their last desperate attempt to create a future.
Are you surprised that the CEO of Coupons.com thinks that eliminating coupons is a bad idea? Really?
Ron Johnson developed the Apple Store. I'm pretty sure he knows what he's doing. The only question is whether it will make any difference.
Xithras
(16,191 posts)JCP has been having financial problems for the better part of the past decade, and things have been getting worse for the past several years. It's hard to lay that all on this guys shoulders.
Department stores in general have been losing traction in the market since the 80's, and the Internet hasn't helped things...the entire segment is slowly fading away, and it's hard to see how JCPenney can last using their current model. Their only chance is to figure out how to change into something OTHER than a department store. For employees who enjoy working in the department store environment, the next decade is going to be pretty unpleasant.
stopbush
(24,378 posts)The "House of Penny" took decades to build, but it's taken less than a year for a jerk with a book of matches to burn the thing down.
This guy is a "my way or the highway" corporatist. It's a bit dismaying to see DUers rushing to his defense, simply for his handing out free haircuts to kids at the expense of the livelihoods of his employees. I don't see Ron Johnson taking any kind of pay cut for his loser "strategies." You can't say that for the rank & file.
Tallulah
(209 posts)Dear valued customer,
Let me start with a special thanks to those who responded to my first
email. Praise or criticism, nothing beats honest feedback. It's what
makes us better.
I have a lot of great news to share this month.
First, we had an amazing response to our "free kids' back-to-school
haircuts" offer. It was far bigger than I expected. We gave away over
1.6 million haircuts in August. We're delighted that we could help so
many kids make a great impression on their first day of school.
The haircuts were so popular, we're going to keep them going. Starting
in November, kids (K-6) get free haircuts every Sunday at jcpenney.
Just call for an appointment and we'll help keep your kids looking
their best.
I also have exciting news about the store itself. The "new jcpenney"
is starting to emerge!
We're on our way to turning jcpenney into a collection of shops
featuring your favorite brands, staffed by specialists who really know
their merchandise. We have now opened Levi's®, Liz Claiborne®, Izod®
and The Original Arizona Jean Company® shops in over 600 stores.
And we've just launched an entirely new line of clothing. We're so
proud of this merchandise, we've put our own name on it. The new jcp
brand (for men and women) offers fashion essentials in wonderful
fabrics and colors, all at great prices every day. I invite you to
visit your local jcpenney to see our new line.
Finally, I'd like to thank everyone for "rounding up to the nearest
dollar" at checkout as part of our jcp Cares program. Combining your
efforts with ours, over $3 million will be donated to our August
partners, the Boys and Girls Clubs of America and 4-H. This month's
charity partner is Teach for America, an organization that develops
teachers and leaders to make America's schools great.
I'm proud of the jcpenney team's passion for innovation, and I promise
we're going to keep pushing. My goal is nothing less than to make
jcpenney your favorite store.
Of course, it's your opinion that counts most. So if you have a
minute, please click the link below and share your thoughts.
Thanks again for shopping at jcpenney.
Yours truly,
Ron
Raine
(30,540 posts)departments stores go. All we will be left with is the big box stores where you push a cart around, with no customer service etc.
Purveyor
(29,876 posts)Buns_of_Fire
(17,121 posts)when the so-called "Million Moms" tried to instigate a boycott to force them to dump her.
http://www.reuters.com/article/2012/02/03/us-jcpenney-ellendegeneres-idUSTRE8121VK20120203
renate
(13,776 posts)Personally, I hate coupons--I would never have guessed that getting rid of them and having every-day low prices would have backfired the way it did. Coupons are a pain in the butt and they put limits on the amount you can save if you only have coupons for certain things, and you have to worry about whether the things you buy at regular prices will go on sale next week...
But mainly I applaud and support them for sticking with Ellen.
zen_bohemian
(417 posts)Is a haircut really all that important when kids don't have a coat for winter or holes in their shoes? Just saying...