The company will start advertising “sales” once more, hoping to lure back customers who seem increasingly reluctant to shop at its stores, Reuters reports.
Earlier this year, the retailer attempted to persuade customers that coupons and temporary sales periods were just gimmicks and touted its no-sale policy in advertising. Consumers were urged to “Do the Math” and see that J.C. Penney’s normal pricing was less than competitors even with sales and discounts.
Same-store sales nosedived during the first quarter, falling 18.9% .
The company attributes the sales decline to poor marketing. CEO Ron Johnson says customers just didn’t understand the company’s new pricing strategy.
J.C. Penney shares have fallen more than 42% since February.
Now, the company will put selected items on sale for an entire month, but has dropped its “month-long values” term in favor of the original word that consumer understand best: “sale.”
Johnson, who previously ran Apple‘s (NASDAQ:AAPL) retail stores, said that customers would eventually adapt to J.C. Penney’s new strategy and revenues would improve before the end of the year.
Shares of J.C. Penney were up more than 2% in Wednesday afternoon trading.