J C Penney Company Inc (NYSE:JCP) Shifts Focus To Value-Oriented Customers
In the quest for a true turnaround, J C Penney Company Inc (NYSE:JCP) is leaving no stone unturned as early indications reveal. The retailer is increasingly sharpening its focus on the customer population that it believes makes sense for its future. In a recent development, JC has partnered with Michael Strahan to launch a line of menswear that targets customers with a modest income, but who are value-oriented.
J C Penney Company Inc (NYSE:JCP) attempted a bungled upgrade a few years ago under Ron Johnson. The strategy that Johnson came up with, to appeal to high spenders only, resulted in JC alienating its core customers, triggering a brutal sales decline that the company has never fully recovered from. However, important lessons were learned from the bitter experiences in the failed upgrade, and the company is ready to apply them to craft a dazzling future.
Modest spenders after value
That explains why JC’s new CEO, Marvin Ellison, recently said that his team will not be bothered about chasing after customers who are not interested in their items. Instead, Ellison is keen to bring JC back to its roots by focusing more on core customers – the modest spenders who appreciate value.
Towards that end, JC recently launched Collection by Michael Strahan. The line includes tailored suits, dress shirts and neckwear among others. According to Ellison, Strahan approached them with the idea of teaming up on a line of menswear that every man seeking to look nice can afford. The idea resonated well with Ellison and his team and they decided to give it a try. The Collection by Michael Strahan is an exclusive line of clothing priced below $200.
Nothing like a fad
Strahan said that Collection by Michael Strahan is not a fad thing, because after all he has never been a fad buy. As such, the line of more affordable but quality menswear is not something that will disappear in five years, but a business that will continue to get better with time.
J C Penney Company Inc (NYSE:JCP)’s core customers are the $50,000 to $80,000 income households. The company hopes that its core customer population will love the Collection by Michael Strahan line.
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