J.C. Penney's (JCP) New Ploy to Attract Business Smells like Desperation but It Might Work
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Price: $19.16 +1.86%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.3%
EPS Growth %: -424.0%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.3%
EPS Growth %: -424.0%
Trade JCP Now!
Shaggy-headed children of America and their parents received good news this weekend. Starting November 4th, department store J.C. Penney (NYSE: JCP) will be giving away free haircuts every Sunday. The decision is a follow-up on last month's 'back to school' free haircut promotion, which received an overwhelming response, and makes the changes permanent.
Some investors view the announcement as a desperate maneuver to drive traffic into JCP stores, and it illustrates the lengths the company's new CEO, Ron Johnson, will go in his effort to revitalize business at the struggling retailer after dismal earnings results and comps in the first half of the year. It is no secret on Wall Street that the company needs a good shake up, and this is exactly what Johnson intends to do.
In addition to offering free haircuts, recently Johnson made other adjustment to the company's strategy, including changes in pricing and efforts to promote in-store brands. Beside some early confusion over the pricing changes, so far customers seem to be reacting positively to the changes and investors will be interested to see if these efforts can be translated into improved performance.
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Some investors view the announcement as a desperate maneuver to drive traffic into JCP stores, and it illustrates the lengths the company's new CEO, Ron Johnson, will go in his effort to revitalize business at the struggling retailer after dismal earnings results and comps in the first half of the year. It is no secret on Wall Street that the company needs a good shake up, and this is exactly what Johnson intends to do.
In addition to offering free haircuts, recently Johnson made other adjustment to the company's strategy, including changes in pricing and efforts to promote in-store brands. Beside some early confusion over the pricing changes, so far customers seem to be reacting positively to the changes and investors will be interested to see if these efforts can be translated into improved performance.
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JCPenney
Karin Shuttlesworth on Sep 10, 2012 01:29 PMMark as Spam | Reply to this comment
Should someone at least check to see if the name of the company is spelled correctly?