New York, NY, United States (AHN) – After a poor holiday season, J.C. Penney is revamping its strategy by retooling its store formats, marking down its merchandise and simplifying its promotions.
In a statement to industry analysts Wednesday, Ron Johnson, chief executive of J.C. Penney said, “We are rethinking, we are reimaging, and if we find we have picked up some bad habits through the decades, we will leave them far behind.”
Starting in August, the retailer plans to carve each of its stores into 100 sleek, neat sections featuring brands or product categories, Penney’s executives said. It will start adding two separate shops per month at each store.
Penny’s 1,000 stores will also try to attract customers by bringing in name brands from domestic diva Martha Stewart and iconic fashion designer Nanette Lepore. The retailer is already enjoying success with its Sephora cosmetics boutiques and its MNG by Mango fashion stores.
Penny will spend $80 million a month on an advertising campaign to inform shoppers of the changes. Ads will be heavily focused on television spots featuring comedian Ellen DeGeneres. The retailers is also doing away with circulars in favor of a monthly booklet that will detail monthly specials.
In 2011, the chain had 529 promotions.
Penney’s, a 110-year-old department store, expects the changes will be completed by 2015.
In morning trading on Thursday, shares of J.C. Penney were trading higher by nearly 12 percent at $38.11, not far from its 52-week high.