A strategic mistake made six years ago by celebrity CEO Ron Johnson continues to haunt popular retailer JC Penney, as evidenced by the ongoing sluggish sales growth and store closings that have made the company smaller—a fraction of what it once was. JC Penney’s woes began with a change in the retailer’s pricing strategy --replacement of coupon sales with everyday low prices. JC Penney abandoned this strategy after Ron Johnson assumed the leadership of the company, modeling the company's stores after those of Apple. Apparently, J. C. Penney’s strategic mistake came from a misunderstanding of a crucial difference between retail stores and Apple stores: Hype! But retailers like JC Penney don’t have a similar marketing machine, and its products aren’t unique either; they are carried by Macy’s, Kohl’s, Wal-Mart, and Target – to mention a few.

Source: Forbes February 24, 2017 22:58 UTC