Clothing’s retailer J.C. Penney Company, Inc.(NYSE:JCP) has kick-started the holiday season with customers getting an email from Chief Executive Ron Johnson accompanied by a $10 coupon.
Incidentally the enclosed coupon surprised many as Johnson, in January, had said that the company should move away from trying to lure customers with deals and coupons.
"Coupons were a drug," he told a conference in May.
And now here is the company, starting off the crucial holiday season with a coupon.
In the email, the CEO said that the coupon was an incentive to customers to see the new stores of the company. Johnson has reduced the number of coupon and sales promotion that the retailer normally indulges in and has also refurbished the 1100 stores that stretch across the country.
J.C. Penney has seen reduced traffic for a while now, the effects of a series of marketing blunders and miscommunications with customers.
While Johnson may have tried to provide incentives to customers, investors were not incentivised.
Coupons and deals are used by companies, especially clothing’s retailers, to lure customers to the market. It also creates a loyal band of customers, who may be induced to visit the stores when there are n sales happening.
J.C. Penney is trying to position its stores as places here people can hangout, sipping coffee or maybe attending yoga sessions. The idea is to give them the feeling of a town square.
Analysts however feel that customers used to coupons and deals may not take kindly to the changes, that are occurring at a very fast pace.
Shares of the company soared 8.50% in Thursday’s session and down 1% in today’s trading session.