It's the struggling retailer's latest attempt to reinvent itself
of ConsumerAffairs
Can a popular Canadian named Joe Fresh save a tired old American named J. C. Penney? We'll soon know. The troubled retail chain is opening Joe Fresh apparel shops inside 681 of its U.S. stores today, hoping to draw in new, younger customers to replace the ones it's driven away with its attempt to revamp itself.
"We want to become famous for irresistible style at incredible value every day," said Ron Johnson, Penney's embattled chief executive officer and former Apple retail wunderkind. "By introducing these exciting brands at truly affordable prices, we are making it easier for customers to look and live better every day."
Joe Fresh, as close as we can figure, is sort of the Gap of the North. It's billed as Canada's favorite apparel brand, claiming to offer "classic style with a twist."
Beginning today, Joe Fresh's spring collection of "modern basics for women" will be presented in 750- to 2,500-square-foot shops in nearly 700 jcp stores. All of the apparel and accessories will also be available on jcp.com for under $70, the retailer said.
"Significant milestone"
"Building Joe Fresh shops inside jcp is a significant milestone because it makes us truly national, and now customers can buy Joe Fresh products online exclusively at jcp.com," said Joe Mimran, creative director of Joe Fresh. "The ability to broaden our reach reinforces the Joe Fresh brand promise, which is rooted in the belief that everyone deserves fresh style at fresh prices."
Having a bunch of "shops" inside the jcp stores is one of the key elements in Johnson's plan to reimagine the aging retail chain.
The hope, obviously, is that Joe Fresh will bring a fresh start to jcp. It certainly needs something. Even skeptics were shocked earlier this month when the company reported fourth quarter earnings that were a disaster even by recent J.C. Penney standards. The retailer reported a quarterly loss of $552 million, amounting to $2.51 a share.
Company revenue declined more than 28%. Same-store sales plunged 32%, worse than the previously worst 26.1% in the third quarter. Online sales dropped a stunning 34.4%.
Besides plummeting sales, jcp has been enmeshed in a bruising court battle with Macy's and Martha Stewart, the sort of dispute that winds up makes all parties look bad.
Fresh enough?
Will Joe Fresh be enough to turn things around? Maybe, but if it's not, the result could be a lot worse than another bad earnings report.
"If it doesn’t work, I think it’s going to get really ugly,” said one analyst quoted by Bloomberg Businessweek, echoing a sentiment that's become commonplace on Wall Street.
Consumers aren't wild about the changes either. Angela of Carolina Shores, N.C., said she went to the Penney's in Myrtle Beach a few days ago and found it even emptier than the last time she was there.
"I did see 1 or 2 people cutting through to get to the parking lot but not shopping. I did find a blouse [but] lo and behold, there were no cashiers," Angela said in a ConsumerAffairs review. "I then stopped an associate and asked 'Where do I pay for this?' She took out an iPhone and asked for my credit card.
"I stood there with my mouth open. I proceeded to say 'Are you kidding, what is this all about?' She told me it was a new process now at Penney's. ... By the way, I completed my shopping at Dillard's. They are more people friendly!"
Diane of Menomonee Falls, Wis., blames the company's directors.
"You allowed this one CEO high-tech idiot to destroy what took a century to build. I am (was) a loyal JC Penney customer. I am 54 and ex-New Yorker who spent zillion hours shopping in my life while always hunting for a good sale, a good sale, which is something you took away! Why did you allow this to happen? Why did you stop the fun sales?" Diane asked.
"You allowed this non-retail person to end fashionable and affordable lines for ladies (who are not 15 and a size 0). Those people don't shop in JC Penney's anyway. You lost the middle age shoppers like me. You never had many of the 20 something's; the 30's don't like what you did either. So who do you have shopping besides your employees? No one," she said. "Get rid of Mr. High Tech. Let him turn Best Buy around and hire a few of your 50-something female employees who know what we like before it's too late. I won't be back until he's gone!"
Like Diane, Charlotte of Kingsport, Tenn., is a longtime customer who has scratched Penney out of her playbook.
"I have tried to keep an open mind about the changes being made at JCP, but I have reached the point that I am completely unable to see any improvements that have been made. All of the changes seem to be detrimental," she said. I received a $10 coupon last week, so I thought I would give it one more try. I was shocked since my last visit in early January. The store was so empty it looked like it was going out of business. Many of the customer service centers (cash registers) had been closed. I didn't find anything that I wanted to buy even with $10 off. All of the brands that I loved are gone. Ordering on the website is a joke. It's hard to find anything in stock. If the coupon had been for $100, I still would not have been able to use it. I can't believe the damage that has been done to this company and cannot imagine how it will ever recover."