Watch the youtube video:
Based on the video, how is JC Penny’s making the switch from department store to specialty store? Can JC Penny’s compete with Nordstrom’s in today’s shopping market?
Combine carefully defined product lines, services, and reputations to persuade consumers to expend effort to shop at their stores.
This paper discusses the future of department stores in America by comparing the JCP business model to Nordstrom.
How JC Penny is making a switch from a department store to a specialty store
The CEO Johnson is transitioning JC Penny from a promotional department to the 21st-century sophisticated store he calls JCP. Johnson plans to entice clients with shops within JCP stores, making mini-mall in every store. The stores have got “streets” which has got Lego station for kids to play and in-store candy shop for a treat. Likewise, the store has got an iPad table for men to catch-up on the scores as their spouses’ or wives ‘ shop (CBS News, 2012). JCP has also adopted coherent merchandise prices because Johnson removed the coupons that JCP clients depended on for years. Johnson prefers raising prices, having coupons or price good lower daily, and delivering more value seasonally.
Whether JC Penney can compete with Nordstrom’s in today’s shopping market
JCP cannot compete with Nordstrom in today’s business environment because changing JCP from a store of necessities and sales to a digital-drive store will take some time. Nordstrom is resolved to innovate within its core business, leveraging an enthusiasm to integrate technology and remain authentic to its store and service essence (McDonald, 2020). Nordstrom has been advocating for digital changeover because it comprehends the youthful clients and has promoted the rack-off-price store openings. Nordstrom uses technology in meeting clients’ needs. The handheld devices used at the shoe department have real-time access to the entire inventory (Sinclair, 2017). likewise, the transformation to a new rewards program might have impacted because clients loved getting cash rewards by mail. Nordstrom is a contrast to the JCP report. The current environment is uncomplimentary for retailers, but I see Nordstrom being the winner.
CBS News (2012, November 25). What is the future of the department store? [Video file]. YouTube. https://www.youtube.com/watch?v=bw-PeCfOGjY
McDonald, S. (2020, February 24). Where Macy’s, Nordstrom, and Other Department Stores Struggled This Quarter. https://finance.yahoo.com/news/where-macy-nordstrom-other-department-194859186.html
Sinclair, S. (2017, August 12). Why Nordstrom is beating all of its department store competitors. Yahoo Finance. https://finance.yahoo.com/news/nordstrom-beating-department-store-competitors-125704786.html