J.C. Penney Hopes to Lure Shoppers With Coffee, Juice Bars

It's "no-sales" strategy bombed with customers

   

J.C. Penney Hopes to Lure Shoppers With Coffee, Juice Bars

JC Penny 1 300x199 J.C. Penney Hopes to Lure Shoppers With Coffee, Juice BarsAfter ditching sales and coupons, struggling retailer J.C. Penney (NYSE:JCP) thinks it has found a new way to keep shoppers in its stores.

The discount department store chain plans to add coffee and juice bars, Business Insider noted.

JCPenney185 J.C. Penney Hopes to Lure Shoppers With Coffee, Juice Bars
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J.C. Penney CEO Ron Johnson first touted the idea of offering in-store refreshments back in August. The idea is that customers won’t have to leave the store if they get hungry and thirsty and can continue to shop.

Industry analysts say that providing food and beverages increases the time shoppers spend at a store. Customers who visited Urban Outfitters’ (NASDAQ:URBN) in-store cafes spent twice as much time inside the stores.

J.C. Penney desperately needs to attract shoppers. Johnson’s “no-sales” marketing strategy, which replaced periodic discount offers will everyday low prices, has fallen flat with customers so far.

With the promotional policy still faltering, J.C. Penney has concentrated on other ways to win customer favor. It recently said it would provide Apple’s (NASDAQ:AAPL) iPads to store employees to process sales in place of cash registers, speeding up the checkout process. Johnson formerly headed Apple’s retail store chain.

Shares of J.C. Penney fell more than 2% in Thursday midday tradng.


Article printed from InvestorPlace Media, http://investorplace.com/2012/11/j-c-penney-hopes-to-lure-shoppers-with-coffee-juice-bars/.

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