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Despite JC Penney’s warning that its new pricing model could hurt sales for a while, a survey of shoppers suggests it will pay off in the end.Here’s Citi’s Deborah Weinswig:
We conducted a proprietary survey to gauge the reaction of JCP shoppers to the company’s new strategy. Our survey found that customers like everyday value pricing, are satisfied with the customer experience, and should respond favourably to upcoming merchandise changes. These findings give us increased confidence that JCP has the right strategy long term, and we believe investors should stay the course with the stock. JCP is on CIRA’s Top Picks Live! list.
20 six per cent of Penney customers say the new model will lead them to shop more, while only 8 per cent said it would make them shop less, according to Citi’s survey. A full one third of customers were not aware of the change.
Now see the presentation: Ron Johnson reveals his plan to make Penney the next Apple >
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