Now, J.C. Penney should still take on that task without the Apple Inc. (NASDAQ:AAPL) retail guy to compensate for any potential weaknesses in its merchandising and pricing strategies. A stronger distribution strategy can be a better third leg to help balance total operations.
The concept of retail distribution today obviously goes beyond physical retail outlets and includes online and mobile shopping. But, it should also incorporate the use of mobile applications to assist in-store shopping experience. Mobile apps can help shoppers better navigate through a store, find promotions on particular items, or get information on product replenishment of popular items, all without having to consult a store clerk who can be nowhere to be found oftentimes and may not know all the answers.
Conversely, online purchases are not complete without the eventual physical delivery to customers, which may require a new kind of distribution effort by retailers. Anyone who has shopped at J.C. Penney Company, Inc. (NYSE:JCP) online knows how non-competitive its shipping charges are. Why not build an in-house delivery work force to add shipping value to customers to increase sales? It could be a real boost for J.C. Penney, now having a difficult time to compete on both merchandising and pricing.
As we now know, J.C. Penney wasted much of shareholders’ money on hiring a management team that didn’t deliver. Investors once again learned that they must watch closely over management moves and business strategy formulation. Earnings reports are not all that is; they are only the expected results from the management already put in place.
The article How Can J.C. Penney Stack Up to Its Competitors? originally appeared on Fool.com and is written by Jay Wei.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.