Apple’s former retail chief Ron Johnson has outlined plans to use what he learned at Apple to revitalize struggling retailer J.C. Penney, which he now heads as chief executive.
Johnson introduced his plans to improve the performance and allure of the company’s more than 1,100 department stores by getting rid of clearance sales and advertised promotions and instead promoting everyday low prices, “best prices” and month long deals.
The company also plans to introduce “store within a store” merchandizing that Johnson pioneered at Apple as a brand. The effort sounds similar to plans being taken by Target to replace a huge shopping experience with a series of boutique areas, usually focusing on a particular brand or designer.
The company took a full-page ad in the Wall Street Journal, announcing the company’s new direction as “No more pricing games. Just great prices from the start,” sayng “we’re not interested in being the biggest store or the flashiest store. We want to be your favorite store.”
The ad recalls elements of Apple’s “Think Different” campaign. Apple used that campaign to reconnect with its audience. Something J.C. Penney desperately needs to do.
Ten years after launching its retail stores, Apple reported $6.1 billion in quarterly revenues. They also announced plans to partner with Target in opening 25 new “store within a store” locations this year.