Tomahawk, WI 10/08/2013 (BasicsMedia) – It has been said that J.C. Penney Company, Inc. (NYSE:JCP) has been struggling because it failed to attract new customers. A company such as JCP’s needs a constant flow of customers, both regular and new clients. This has been JCP’s biggest failing. It has endured a torrid 2013 and as things appear, this may continue for an extended period of time. I must credit JCP that it hasn’t given up yet. It hasn’t given up the fight to stay afloat and continue serving its customers, at least the few who are left. As it embarks on price cuts, is this enough to bring customers back?

 If JCP is to experience a turnaround, it needs two things to work in its favor. First, the company has to demonstrate that it is still attractive to investors. Secondly, it needs to prove to its clients that it still has the products which they need. If the two can be worked on, the company will be on its way to achieving great success for a long time. One way of attracting customers is to embark on price cuts. But if JCP does this, is it saying that it has opened its doors to everyone and will not be serving a particular segment of the population? This is a two-edged sword.

 Such an exercise could work by making everyone feel welcome to step into JCP stores and buy the products it has in stock. Similarly, it could backfire by discouraging the specific clients who JCP has been serving or catering for all this time. If it works well, the strategy could lead to an increase in JCP’s revenues and sales thus leading to positive reviews from investors and Wall Street analysts alike. The price cuts are timely since they are taking place just when the holiday season is about to set in, during which time the retailer is expected to make a lot of sales.

 The company has also decided that this is the time when it has to increase its free shipping promotions. This is also quite timely since it is taking place just prior to the onset of the holiday season when people spend. The company says that if a customer buys items worth $25 online, they will be shipped to the store at no further cost to the client and he/she will be notified as to when to pick the items. This is also a good strategy which if carried out well, has the capacity of helping the company see an influx of customers through its doors.

 However, JCP has to carry out these price cuts carefully. This is the only asset it has which it can make use of to attract new customers as we go into the holiday period. The company has been desperate for quite some time now. It has tried various strategies to woo its customers back to its stores, but none has thus far worked. It has only succeeded in reporting losses of more than $560 million, and seen its sales drop by close to 12% to settle at $2.7 billion in the last quarter. It has no choice but to embark on this new strategy of price cuts to attract customers.

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