Is J.C. Penney Nuts?
So J.C. Penney is getting out of print catalogs next year. Really. Even though the general merchandiser has already learned this year, after dumping its big book title in 2009, that when you stop mailing catalogs, your sales go down. Really.
Instead of catalogs J.C. Penney in 2011 plans to distribute “look books.” These booklets won’t show much merchandise, and with products what they do promote, they won’t include the item numbers. Really.
Penney expects the look books will send customers to its website for information about product styles, sizes and colors. Well, there’s nothing wrong with asking shoppers to visit your site to see the full line or more options, but how about at least letting people buy what you are showing them in the catalog?
I don’t blame Penney for dropping the big book—its time had come. But maybe it should have examined its strategy of replacing the giant, biannual catalog with 25 specialty titles—are the product assortments right, are the circ plans viable, do we really need all 25—before determining direct response books don’t work.
I’ll say one thing: With such a bold move, the retailer certainly can’t be accused of being obsessed with its print catalogs, as some multichannel merchants are today. But while this may be the direction that most multichannel marketers will eventually head in, Penney is a little early and a lot shortsighted.
Instead of letting customers shop the way they want to, the merchant is pushing the web channel on its buyers. And since its customer base likely includes a lot of older, more traditional catalog consumers, I imagine they won’t be thrilled with this strategy.
Especially if you’ve long been a trichannel merchant, when you insist customers go to the web or to the store to make a purchase, you are leaving money on the table. I hope J.C. Penney is braced for a big hit in sales next year.
September 30th, 2010 at 1:50 pm
I belive they will be leaving a lot of shoppers out that do not have a computer and do not intend to get one. I have a lot of customers that always say they would not own one. The older generation does not want to shop by way of the web.
September 30th, 2010 at 4:24 pm
I agree with Gary. Sometimes it is easier to look at a catalog and pick up the phone to order. Even if a person has a computer it is a hassel to have to log onto a site, register, pick out your product, go to your cart and enter all your information. Having to go to the web takes some of the fun out of shopping.
September 30th, 2010 at 4:34 pm
“A little early and a lot shortsighted” — wish I came up with that line!
September 30th, 2010 at 4:47 pm
Dropping this bomb on the heels of the PRC rejection of the USPS exigency price case is really rubbing salt into the wound! I agree with other commentors…this is definitely a mistake for JCP.
September 30th, 2010 at 5:09 pm
Agreed. But I think there is another factor at play here which has not been mentioned.
The term “lookbook” suggests to me that ol’ JC is feeling a little insecure about its fashion status. Lookbook is high-end terminology for folks like Gucci and Louis Vuitton, seldom heard around a bread-and-butter, mass-market apparel cataloger. Perhaps they’re trying to feed their egos instead of the coffers. Let’s see how this one plays out….
September 30th, 2010 at 10:21 pm
Big, big, BIG mistake. Shame on J.C. Penney. Revenues of $19.86 billion in ‘08, $18.49 billion in ‘09, $17.56 billion ‘10. Without catalogs, wonder what the end of 2011 and 2012 will look like?
November 5th, 2010 at 5:52 pm
I read this in a little bit of shock. I recognize that the catalog business may one day be a shopping experience of the past; however I don’t believe we are quite there yet. My mother-in-law is a JCPenney Catalog shopper. After reading your blog, the first thing I thought of was her, and the many other consumers like her. We recently purchased a computer for my parents-in-law, and I my 65 year old mother-in-law has been so excited about learning the ins and outs of this futuristic world. She’s learning how to type, and just last week she made her very first purchase online! And she was so excited! Phew! Thank goodness we got her a computer before JC Penney pulled their catalogs! I somehow doubt all of their faithful catalog customers will have that same relief.