On January 25, 2012, JCPenney CEO Ron Johnson took a stage in front of a throng of anxious investors, analysts, and reporters.
He announced his plan to turn things around at the struggling department store.
Johnson was JCPenney's white knight. He had joined the retailer in late 2011, leaving his high-profile job as the retail chief at Apple.
The brilliant mind behind the magnificent success of the Apple Store was supposed to be the century-old chain's savior.
It's not nearly over yet — his plan called for a few years of transition. But now, it has been one year since Johnson gave that presentation.
JCPenney's stock is down 53 percent since then.
January 2012 — New CEO Ron Johnson unveils his turnaround plan in a presentation to investors, analysts, and the media
Johnson's plan focuses around a few key points:
- Change the pricing strategy to "every day low prices," which have three tiers: 1) regular prices, 2) month-long sales, and 3) the "best price"
- Revamp the entire layout of the store to become shops, supplanting the bazaar-like atmosphere
- Sign a ton of high-quality brands to fill those individually-branded shops
- Rebrand with a new logo to "jcp"
- Overhaul the website
February — Stores roll out the new pricing strategy and Johnson runs into his first media controversy
On February 1, JCPenney begins its new pricing strategy of "every day low prices," aiming to wean customers off of coupons. Johnson touts it as "fair and square"— a simple, transparent way for customers to buy.
Meanwhile, Johnson runs into a controversy centered around JCPenney spokesperson and TV host Ellen DeGeneres — sparked by an anti-gay group because she's a lesbian — and handles it spectacularly.
March — A survey says customers really like the new JCPenney
A big survey from Citi's Deborah Weiswig concludes that customers like the new JCPenney and says that even though customers might take a while to get used to the new pricing, it'll pay off in the end.
Twenty six percent of Penney customers say the new model will lead them to shop more. Only 8 percent said it would make them shop less.
However, one third of customers were not aware of the change, according to the survey.
See the rest of the story at Business Insider