In today’s day and age, the concept of “the customer comes first” is often times lost in the retail environment. Often times, companies care about nothing more than their bottom line. They don’t care how customers are treated, until it backfires on them, of course. Is it possible that J.C. Penney Company, Inc. (NYSE:JCP) has run into this issue?
Don’t Forget the Customers, J.C. Penney Company, Inc. (NYSE:JCP)
Just like any retail company, Penney is only as good as its customers. Make these people mad and they are never going to succeed, regardless of prices, locations, or other details.
This article by Jeff Macke talks about something many others have overlooked: the fact that Ackman can come across as arrogant. While this may be acceptable at the country club, when it comes to a retail business, one in which more than half its “customer base is over 55 and 19% make under $35,000 a year,” this sort of attitude does not look good.
Every great retail company loves their customers. They know this is the way to greater profits, and will do whatever it takes to connect with these people on a personal level. You don’t have to look any further than the great Sam Walton to see that this is true.
Is it possible that Ackman failed in this business because he cared more about the bottom line than customers? It is a shame that his approach has had such a negative impact on J.C. Penney Company, Inc. (NYSE:JCP) in an overall sense, but let’s be honest: the guy had a lot of power over the past couple of years.
Now that Ackman is out of the way, it will be interesting to see if Penney is able to right the ship by paying more attention to consumers. Maybe the company will realize that doing this will eventually pay off in terms of revenue and profit.
The Ackman era at J.C. Penney Company, Inc. (NYSE:JCP) has come to an end. It was a tumultuous one, to say the least.
Do you remember the following Penney commercial? It goes a long way in showing how Ackman perceived customers: