(PLANO, Texas) — J.C. Penney Company experienced a stunning 20 percent drop in revenue in the first quarter of this year, the retailer announced Tuesday.
The company reported a larger than expected loss after a new strategy put in place by ex-Apple retail chief Ron Johnson ended big discounts and coupons in favor of no-sale pricing.
The quarterly earnings report is the first clear sign that many consumers don’t like the end of heavy discounting.
“While we have work to do to educate the customer on our pricing strategy and to drive more traffic to our stores, we are confident in our vision to become America’s favorite store. We fully expect that the bold and strategic changes we are making to our operations will result in improved profitability and sustainable growth over the long term,” said Johnson, chief executive officer of J.C. Penney.
Johnson told investors the company’s turnaround has been a lot harder than he expected.
Copyright 2012 ABC News Radio
Ivaylo Vezenkov and Lauren del Valle, CNN
Julia Horowitz, CNN
Susan Scutti, CNN