As part of its turnaround efforts, JCPenney implemented the “Get
Your Penney’s Worth” campaign in late February, enabling
consumers to buy select items for just one penny. The promotion is part of the
company’s renewed focus on private label brands such as St. John’s Bay, Arizona
and Stafford.
The RTP team discusses
the effectiveness of the JCPenney “Get Your Penney’s Worth” campaign, and their
expectations for how it will affect the brand going forward.
Debbie Hauss, Editor-in-Chief: It’s a cute promotion, especially because of
the name of the company. It sort-of reminds me of the “Buy one suit, get
three free” that Jos. A Bank. used to
promote. I think most people knew there were serious markups involved, but it
still drew people in. In the same vein, I think this marketing tactic will draw
people into JCPenney; and I do think JCPenney still needs to do whatever it can
to bring back its most loyal customers, many who left during the Ron Johnson
debacle. I do have to give CEO Marvin Ellison kudos
for his efforts to re-energize the brand. He’s been tirelessly talking up the
company’s recent efforts since the former Home Depot and Target exec joined the
company in 2015.
Adam Blair, Executive Editor: The “Get Your Penney’s Worth”
promotion may be just a clever ploy to garner publicity, but even if
it is it’s doing its job well. What’s more important are the indications
that JCPenney is making a serious effort to combat the department store
doldrums affecting big names throughout this vertical. This CNN Money article notes
that JCP got back into the appliance business based on “failed
search” analysis, discovering an opportunity when the retailer asked its
customers what they weren’t finding
on its web site. Refocusing on its popular private label brands is another
smart move in an age when retailers need to do all they can to reinforce what’s
unique about their brand and their shopping experience. JCPenney still has some
big hills to climb but at least it seems to have found a paved road.
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Alicia Fiorletta, Content Strategist: I can understand why, on the surface, this
looks like a really desperate attempt for JCPenney to get bodies in the store
and get folks to spend some money. However, as the Business
Insider article points out, this is part of truly holistic
strategy that focuses on updating some digital properties, honing its private
label brand list, and more. Obviously, consumers don’t typically care about
this stuff unless it directly impacts their lives and their shopping
experiences. So I think using a tag line like “Get Your Penney’s
Worth” is a clever play on the retailer’s name but focuses on the
high-level value shoppers are going to get out of this new initiative. It also
seems like some indirect shade being thrown at former CEO Ron Johnson, who
attempted to eliminate sales, deep discounts and doorbusters in favor of a more
high-end or exclusive experience.
David DeZuzio, Managing Editor: I think it’s a great idea. Selling something
for a penny is most certainly a conversation starter among shoppers and should
certainly garner enough interest to get more people through JCPenney’s doors.
Plus, it throws extra attention to their private label, so that’s two checks in
the win column for a company that most people were ready to close the doors on
a few years ago. Beyond this campaign, if JCPenney can convince other brands to
partner up for a one-day sale offering the same deal, I think you’ve got a
major idea that would definitely keep people off of Amazon for a few hours and
into their stores. Hey, like anything else, it’s only a bad idea if it doesn’t
work.
Klaudia Tirico, Associate Editor: Whether it’s a desperate attempt or not,
JCPenney has everyone talking. Isn’t that the point? I worked at a department
store when I was in college, and occasionally, a sale item would ring up as a
penny. The customers were so excited! So I can see consumers having a field day
with this promotion. If there is anything that will get people to walk into the
store and stick around, it’s offering a major discount like this. But besides
that, JCPenney’s other attempts at staying afloat – such as displaying sale
items on mannequins and updating its mobile app — are also a step in the right
direction. I think new CEO Marvin Ellison will definitely turn the retailer
around.
Glenn Taylor, Associate Editor: JCPenney appears to be a retailer with a lot of
confidence in 2016, as it plans to stabilize its store
operations beyond the end of the year. At the top, CEO Marvin Ellison has
made it clear that he wants to meet the consumer at every touch point and give
them a top-shelf experience that makes them want to return to the brand. In an
era when department stores are failing to capture (and keep) the attention of the
consumers, this marketing tactic appears to do just that. I have purchased some
of their private label items in the past, and I can say from a personal perspective
that I’d be more interested in stopping by a JCPenney now than I would have in
recent years. If the store experience matches the newest promotional tactic, then I can definitely see the retailer continuing to move forward with a stronger consumer base.
