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JCPenney COO Michael Kramer is speaking right now about his company’s Q1 results, and he explained how JCPenney underestimated one big thing about consumers.”We did not realise how deep some of the customers were into [coupons],” said Kramer.
JCPenney CEO and Apple retail God Ron Johnson weighed in on it too. “Coupons were a drug,” he said. “They really drove traffic.”
Traffic for the quarter was down 10 per cent — down 6 per cent Monday-Friday and down 12 per cent on the weekend.
That’s because weekends are the big buying time for coupon shoppers, said Kramer. Still, JCPenney is going to continue to try to wean people off coupons.
At least people were buying things when they did come into the store. Conversion was at 22 per cent, compared to 21 per cent the year prior.
JCPenney stumbled in the first quarter, with sales of $3.15 billion failing to reach expectations of $3.4 billion.
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