Plano-Based JC Penney Brings Back Sales, Coupons To Win Back Customers

Michael Davis, economics professor at SMU's Cox School of Business, talks about JC Penney's continuing efforts to win back customers.

DALLAS (CBS 11 NEWS) - After losing big money and customers, Plano-based JC Penney is touching up its plans for a total makeover.
Under CEO Ron Johnson, the legacy department store adopted an everyday pricing strategy last year, and turned away from aggressive sales.
But at a retail conference today, the chief financial officer signaled a change.
“We’ve learned the customer prefers a sale. We hear our customers loud and clear and we’ve got to do this in a way that allows us to attract the core customers who lost confidence in us.”...

Mike Davis, an economics professor at SMU’s Cox School of Business, says JC Penney is still trying to figure out what customers want. “The problem with JC Penney, and every retailer is they don’t know what they need to be and what the new model is going to look like. It’s a bigger problem at JC Penney because frankly they were closer to the edge.”...