Does it really take a $10 coupon to get me into a store? Apparently so. And I’m not alone. This week JC Penney released its first quarter 2012 report showing a $163 million loss in revenue. Mostly because of coupons. Or, rather, lack thereof.
JCP CEO Ron Johnson, a former Apple Inc. executive, acknowledged in an article in Huffington Post that the new pricing strategy – everyday pricing in lieu of coupon incentives – has had a tepid response from consumers. And he acknowledged that the rest of the year is likely to be tough on the company’s bottom line. Yet he intends to keep the new pricing strategy – for now – and other companies, wanting to wean customers from deep discounts, are watching.
What about me? I had been a frequent shopper at JCP, excited to use my somewhat frequent $10 coupons good for purchases of more than $10. And I had become a loyal shopper, frequenting the store to purchase other items at reduced –even full – price.
But when the coupons quit arriving in the mail, I no longer felt a sense of urgency to shop. So I haven’t. I did stop in briefly the other day. I liked the pricing and probably will return. I just don’t know when.
Do coupons influence where – and when – you shop?