J.C. Penney executives told analysts that it expects financial struggles to continue during the second half of the year.
The retailer has tried to adjust pricing, merchandise and store design, but sales figures show its efforts have turned off loyal shoppers and failed to draw new ones as it hoped.
That led to disastrous financial results this year and forced the company to change its strategy.
CEO Ron Johnson emphasized at an analysts’ meeting in Dallas on Wednesday that change will take time.
The retailer did away with coupons and frequent sales in favor of “everyday low pricing” earlier this year, but the move upset and confused some shoppers. So it brought back some sales and tweaked its advertising in July.
J.C. Penney is still trying to overcome that misstep and slow sales. It expects the financial drag will linger through the year but thinks new store designs will help its business in the long run.
The Plano, Texas, company unveiled a new store prototype Wednesday that received positive reviews. It features an array of mini-boutiques with brand names such as Disney, Liz Claiborne and Carter’s that build on its earlier success with brands like Levi’s and Sephora that put stores within its stores to draw new shoppers. The company also will widen its aisles and introduce new self-checkout options to improve the shopping experience. And it is adding coffee, candy and gelato stands in an attempt to keep shoppers hanging around.
J.C. Penney hopes the stores will help move its image from dowdy and dated to upscale and trendy, without losing its value edge. Some industry experts remain skeptical.
The company has big financial issues to overcome. Earlier this month, it posted a loss of $147 million in its second quarter, reversing a year-earlier profit, and revenue fell 23 percent as its customer count fell by 12 percent.