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Penney's Internet Strategy

Robert Berner, “J.C Penney Gets the Net,” Business Week, May 7, 2007, p. 70

Regarding this article, and in answering the question, “How the retailer, Penney, has developed an internet strategy to it’s advantage and why demographics are supportive of this strategy?”   Penney used it’s already existing retail platform to meet customer needs using the internet as a tool to shop.

In my opinion, the strategy worked because it allows customers to shop on the net, browsing the items they are interested in to find what they want, and then if they desire, go to the store and pick up their purchase.   Penney has provided a unique ability to customer to check if a particular product is in stock in a particular store, which can save time.   By offering a very large selection of inventory and the ability to see if availability, it’s a win for the customer.  

Another aspect is addressing some of the concerns in transacting over the internet.   Let’s face it; there are still shoppers that are not completely confident in shopping on the internet.   Some do not trust the exchange of personal information, and then there are those who prefer to see what they are buying before the purchasing an item.   And there are those who are okay with purchasing over the internet, but what if they don’t like what they purchased, or it does not fit, or it’s broken.   With JC Penney, you can return it to the closest store – an offering Amazon and other internet retailers do not have the capability to offer.   Penney’s has played off of these concerns and used it’s already broad retail outlets to reach these customers.   Also, J.C. Penney uses it catalogs, which have been a key sales driver, to draw more shoppers to the internet.   Great strategy!