Industry Voices: The Art of the Possible
In order to survive and grow, a retailer’s rate of change has to accelerate faster than the rate of consumer change.
For the last 60 years, retailers have collectively trained and motivated consumers—through advertising and marketing across every demographic—to be hyper-sensitive to price. J.C. Penney, for example, recently learned that you can’t take away coupon promotions, discounts and savings from consumers and expect to grow profits. Why? Because retail is based on legacy brand performance, tough competition, supply based economics, and consumer price sensitivity. More than ever, the retail industry serves an army of smart, well-trained shoppers who love to price-roam to find the best prices they can.
By the way, J.C. Penney just delivered one of its worst quarters ever: sales declined 23 percent to $3 billion dollars, same-store sales fell 22 percent and Internet sales sank 33 percent to $220 million dollars. It’s time for J.C. Penney to reinstate discounts and sales, generate traffic and re-motivate same-store sales growth. So says consumers; so says stockholders.
Peter Weedfald is the Senior Vice President of Sales and Marketing for Sharp Home Electronics Company of America (SHCA). He has also served as President of Gen One Ventures, SVP, Chief Marketing Officer of Circuit City, SVP of Sales and Marketing in North America for Samsung, and SVP of global marketing and EEVP, GM & Chief Marketing Officer for ViewSonic.