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December 6, 2012
While many point to changes in pricing and promotion as the why behind plummeting sales at J.C. Penney, another reason may have been spelled out in Penney's recent SEC filing: workforce reductions. Do you think J.C. Penney management has lost or is in danger of losing the faith of its employees? [more...]
How could JCP not lose top workers and face declining morale of remaining staff? Revenue and comp store sales are falling precipitously and management intends to maintain this strategy until success or bankruptcy, whatever comes first.
The best, most sought-after workers go first. They can leave whenever they want, and without a retention bonus plan, are already gone. The remaining workers have to pick up the pieces, and with more staff cuts to come, are balancing out their job search with work priorities.
None of this is a surprise to me. The JCP new strategy is bold and innovative, but seems to have left customer needs behind. Employees also feel left behind and a decrease in service levels and customer experience are what comes next.