Six months after J.C. Penney Co. launched a new pricing plan, customers still aren't buying it.
The mid-price department store chain reported a bigger-than-expected loss and plummeting sales during the second quarter, as its customers remain confused by the new pricing strategy that ditched hundreds of sales in favor of every day lower prices. The plan was introduced Feb. 1.
It also withdrew its profit guidance for the year. Its shares tumbled more than 6 percent in premarket trading.
Penney's results, released Friday, underscore how difficult it is for a company to change the way consumer behave. It also tests the patience of investors and adds more pressure on its new CEO and former Apple Inc. executive Ron Johnson to turn things around at the retailer.
http://finance.yahoo.com/news/penney-records-bigger-expected-loss-101341393.html
There is something going on at JC Penney that goes far beyond the general economic sluggishness.
Sales tumbled almost 23 percent to $3.02 billion. Revenue at stores opened at least a year fell 21.7 fell, worse than the 18.9 percent drop in the first quarter.
Retail sales and the economy in general are no where near those dismal results. A 23% drop in sales is a disaster on a scale seldom seen in so short a period of time. Could it be that pandering to the 2-3% of the population that identifies it self as gay, or promoting homosexuality with it's ads and a gay spokes person. Nah couldn't be that.
The mid-price department store chain reported a bigger-than-expected loss and plummeting sales during the second quarter, as its customers remain confused by the new pricing strategy that ditched hundreds of sales in favor of every day lower prices. The plan was introduced Feb. 1.
It also withdrew its profit guidance for the year. Its shares tumbled more than 6 percent in premarket trading.
Penney's results, released Friday, underscore how difficult it is for a company to change the way consumer behave. It also tests the patience of investors and adds more pressure on its new CEO and former Apple Inc. executive Ron Johnson to turn things around at the retailer.
http://finance.yahoo.com/news/penney-records-bigger-expected-loss-101341393.html
There is something going on at JC Penney that goes far beyond the general economic sluggishness.
Sales tumbled almost 23 percent to $3.02 billion. Revenue at stores opened at least a year fell 21.7 fell, worse than the 18.9 percent drop in the first quarter.
Retail sales and the economy in general are no where near those dismal results. A 23% drop in sales is a disaster on a scale seldom seen in so short a period of time. Could it be that pandering to the 2-3% of the population that identifies it self as gay, or promoting homosexuality with it's ads and a gay spokes person. Nah couldn't be that.
