J.C. Penney Pins Its Hopes on Holiday Buttons This Year

by Christopher Freeburn | November 14, 2012 12:32 pm

penney20buttons 280 J.C. Penney Pins Its Hopes on Holiday Buttons This Year[1]Struggling retailer J.C. Penney (NYSE:JCP[2]) is betting on buttons to bring in customers this holiday season[3].

Store employees will start distributing 80 million buttons bearing holiday decorations to customers on Black Friday. The buttons have prize numbers printed on their backs. Customers can check the button numbers on the company’s website to see if they have won prizes, The Tennessean notes.

Those prizes include trips to Disney‘s (NYSE:DIS[4]) Disneyland, free products, gift cards or tickets to a taping of the Ellen Degeneres Show.

The buttons are part of CEO Ron Johnson’s effort to replace periodic sales. In an interview, Johnson said the company would hand out the buttons in lieu of millions of coupons.

Since adopting its new “no-sales” strategy earlier this year, Penney has seen its revenue dwindle[5] as confused customers turned to other retailers, including Target (NYSE:TGT[6]), Wal-Mart (NYSE:WMT[7]), Macy’s (NYSE:M[8]) and Kohl’s (NYSE:KSS[9]).

Johnson formerly headed Apple‘s (NASDAQ:AAPL[10]) phenomenally successful chain of retail stores. Despite his dislike of sales[11], Johnson indicated that Penney will continue to offer sharp discounts on Black Friday and Cyber Monday.

Shares of JCP rose fractionally in Wednesday midday trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/11/penney20buttons_280.jpg
  2. JCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCP
  3. bring in customers this holiday season: http://www.tennessean.com/article/20121112/BUSINESS01/311120033/J-C-Penney-counting-holiday-promotion-button-boost-sales?odyssey=mod%7Cnewswell%7Ctext%7CFRONTPAGE%7Cs&nclick_check=1
  4. DIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=DIS
  5. has seen its revenue dwindle: http://investorplace.com/2012/11/7-reasons-j-c-penney-is-just-plain-ugly/
  6. TGT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TGT
  7. WMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=WMT
  8. M: http://studio-5.financialcontent.com/investplace/quote?Symbol=M
  9. KSS: http://studio-5.financialcontent.com/investplace/quote?Symbol=KSS
  10. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  11. dislike of sales: http://investorplace.com/2012/07/jcpenney-jcp-slippery-slope-shows-no-sign-of-slowing/

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