As he prepares for the release of its second quarter 2012 results, Ron Johnson, the new CEO of department store JC Penney, revising the dramatic changes he has initiated for the business model and the image of their company. New pricing scheme it has put in place in February, called "fair and square", was a central component of the new strategy. The scheme originally had three tiers of pricing and eliminate the typical sales point promotions in an attempt to simplify the purchasing process for consumers, so the movement of JC Penney from its previous high rates practice. Other components of the new strategy includes a new store format, the inclusion of several well-known brands, and having special lines designed by famous designers. However, the alarming results of the first quarter, which continued into the summer months, seemed to show that JC Penney customers who are used to getting cash JCP coupons and discount advertising circulars this week, have been slow to embrace the new format of pricing and began to leave the retail Trade in droves. Under tremendous pressure to turn things around, as all important back to school and the holiday shopping season, it was inevitable, Johnson decided to make adjustments to the initial pricing schemes that were set to come into force on August 1. Are these changes enough to turn things around? If Johnson to stay the course to the other elements of its repositioning efforts? Johnson has experience in the creation of Apple, shops helps or hurts him as he attempts to reach his goal of "America's favorite store" JC Penney? "Hide
by Elie Ofek, Jill Avery Source: Harvard Business School 27 pages. Publication Date: September 21, 2012. Prod. #: 513036-PDF-ENG
