As you are probably aware JC Penney, struggling to find a sustainable market position, hired a high powered Apple executive as CEO. He got rid of all their sales and started offering everyday low prices in an attempt to regain some customer attention and loyalty. Based on their recent earnings release, it’s not working, though I hope everybody would agree that this kind of dramatic positioning change can’t be expected to turn things around in a quarter or two.
Now, here comes a gentleman named Bob Sullivan who looks at some research that might explain why it isn’t working and, worse, probably won’t work. Here’s a link to the article. I strongly suggest you read it.