I have to admit I enjoy the new Ellen commercials for JCP, formally known as JCPenny and JCPenny’s. But, I always like Ellen and her return to the JCP store where she worked as a teenager is just as endearing.

http://youtu.be/lvB0LuIxXqs

JCP has launched an ambitious new campaign to connect with customers. The basic idea is to be more transparent with pricing. Clarity and predictability should help people feel they are getting good prices, no matter what day they enter the store. Seems like a good idea. Although, any new pricing structure that needs explanation might have at least some initial trouble.

In addition to changing pricing, the brand has augmented their name, logo, and slogan. Considering the logo has changed three times in three years, confusing customers is a real concern. But will it work? Will JCP be able to pull ahead with the new strategy? Lots of people have been asking this question and only time will be able reveal the answer. However, there are several factors contributing to success or failure.

One blog post in particular highlights how even though the strategy seems smart, it might not work. The author feels the prices are lower, but is unsure how prices will be augmented over time (read here). JCP has a strong history of coupons and customers have come to expect them, as illustrated in the comments to the post. We also know that couponing is “As American as Apple Pie,” at least according to the recent results of a Valpak survey of women. So for the time being, JCP is breaking their own culture and the current coupon culture.

Another possible obstacle lies in showrooming. Finding an item in one store and buying it elsewhere is becoming a real concern for retailers in general.

The ubiquity of smart phones and tablets is making this practice more commonplace. JCP has a product line that many feel can be found in other stores and thus the value becomes more important.

In addition, competitors to JCP are struggling. Kmart, that once inspired Walmart, and Sears are both shutting doors and Filene’s Basement is closing altogether. Even Wal-Mart is downsizing square footage in some markets. Granted, much of the current situation in retail is due to shopping changes from the economic downturn. However, as I have advocated before, the brands that help customers succeed in hard times are more likely to succeed in all times. Now that the economy seems to be picking up, will the new strategy help JCP succeed? According to BIGinsight, only about two in five people think the idea is “hot.”

On the bright side, some are rooting for JCP. It is a brand they have valued and trusted for a long time. Of course, that is true for some customers of Sears too. People don’t necessarily want the stores they have shopped for years to go away, they just want to have a good experience and know they have gotten the best value.

There are several reasons the new positioning may fail for JCP, but the fact that people want it to succeed might change the odds. Forthcoming JCP changes could also help the new strategy succeed, since “fair and square” is only part of a larger plan. Again, only time will reveal if the new positioning will inspire customers and increase sales.

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