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JCPenney's turnaround strategy backfired: Can the department store survive?

Feb. 28, 2013 at 10:25 AM  |  Updated Feb. 28, 2013 at 11:20 AM   |   Comments

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Feb. 28 (UPI) -- Despite JC Penny's best efforts to pull a turnaround and gain costumer's loyalty back, the department store's latest drop in sales may be the last straw.

According to Business Insider, JC Penny is running out of time to bring people back into their store. Especially, with the latest report claiming store sales are down 32 percent.

Consumer service expert and bestselling author, Grant Cardone spoke to Business Insider about the store's predicament.

Cardone explained that JC Penny's low price promise won't bring customers back into the store, and insisted the company needs to work on its customer service strategy.

"What good do these shops do the customer if no one is there to greet you?" Cardone asked. "Their strategy uses gimmicks which have been used over and over."

Cardone went on to compare the store's marketing efforts with those of Target and added that JC Penny's "lowest price" campaign, though smart, isn't effective because it's unsustainable.

"It's not sustainable and doesn't encourage loyalty in any way," he told BI. "If the customer is chasing the lowest price, they're going to go away when they find a lower one."

According to Cardone, JC Penny's only hope is to improve their customer service by investing in employee training, compensation and culture.

"Right now, customers don't have confidence in the company to provide good service," Cardone said. " JCPenney is now merely reduced to advertising, marketing and branding and abandoned the customer service and sales experience."
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