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Fair And Square Case Study

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What do the first and second quarter results indicate about “Fair and Square” strategy? Are these two quarter results enough to validate or invalidate the changes made?
JCP New “Fair and Square” strategy did not go well well with JCP Core customers. Based on the first and second Quarter results about “Fair and Square” strategy indicate a negative impact on JCP. Exhibits 3 and 14 show a decline in revenue between the 1st and 2nd quarter. Revenue in the 1st quarter was 3158 and 3022 in the 2nd quarter. Additionally gross margin declined from 37.6% to 33.2% in the 2nd quarter. The company reported earning loss of $163 million. Additionally customer wasn't just not buying, there were not visiting the store as the company also recorded a decline in customer traffic.
Bases on JCP historical data the company had recorded loss in previous years, however, during the first two quarters of the new strategy the revenue plummet lower. Additionally JCP was losing customer to Macy and Khole because even though according to Deutsche Bank JCP prices was 9% and 26 % cheaper than Macy's and Khole respectively. Therefore, the financial results as well as customer feedback it is enough the Johnson …show more content…

Had Johnson done this he would have realized that JC Penny customer love sales, discounts and coupons. JC Penny need identify what the competition is doing, their weakness and strengths JC Penny was facing competition from high and low end retailer such as Macy, Zara and forever 21. Additionally there was competition for online retailing. JC Penny did not see online retailing as a threat. JC Penny collaborated with Ellen DeGeneres to promote the fair and square strategy. In an effort to appeal to a wide cross section of the market including the LBGT group. By identifying and

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