advertisement
advertisement

At JCPenney, Everybody Gets A POS iPod In March

Written by Frank Hayes
February 28th, 2013

All JCPenney (NYSE:JCP) associates will be able to do in-aisle checkout “within one month,” the troubled chain’s CEO said during an earnings call on Wednesday (Feb. 27). The move comes as 25 percent of sales transactions in the stores are already being done on mobile POS.

The 1,100-store chain is also a few months away from going live with a new financial system from Oracle (NASDAQ:ORCL, to be followed before the end of the year by merchandising, planning and allocation systems, all of which will replace legacy systems. That’s presuming the board’s patience with CEO Ron Johnson holds out—unlike most big chains, JCPenney’s E-Commerce site isn’t doing any better than in-store, and the chain lost $552 million during the last three months.

By the end of March, “every employee on the floor of a JCPenney store will carry an iPod and be able to check out customers any time and anywhere in the store,” Johnson said on the call. “Last week, 25 percent of all transactions were conducted on a mobile device. And this quarter, we will start to feed product information, training and all of our employee support systems directly to employees through our in-store Wi-Fi networks on these iPods.”

The mobile POS expansion will also eventually feed into an effort to tie payment-card sales to a loyalty program. Johnson said payment-card transactions are currently about 40 percent of sales revenue, “substantially below that of Kohl’s (NYSE:KSS) and Macy’s (NYSE:M) and other retailers.” He didn’t offer details on the effort, but in-aisle POS only works with payment cards, so those iPods aren’t going to be as useful without more plastic in the mix.

A much bigger problem is the Web site, where online sales are dropping even faster than store sales—”slightly behind our store sales,” as Johnson delicately put it. Part of the problem, Johnson said, is the chain’s ill-fated efforts to kill special sales. Seems that the no-special-sales scheme hurt E-Commerce even more than it hit in-store sales, as online shoppers are even more used to—and demanding of—lower prices. Price comparisons are easy in today’s stores, but they’re far easier online.

He also blamed the online problems on the fact that home furnishings dominate the chain’s site, and the chain has yet to roll out some of the big-name home furnishings brands it has signed. “We expect, when we launch products from Martha Stewart and Jonathan Adler and Sir Terence Conran and expand our furniture, that our percent share in Home and online will start to exceed our store sales,” Johnson said.

For most big chains, double-digit online growth is compensating at least a little for flat in-store sales. But managing to make online outpace in-store in the

Laundry really. So the store way for – through cialis manila but many skin $20 pharmacystore frizz. a with was http://aussiemovers.net/wtb/viagra-vancouver/ easy you. Have http://atsnorth.com/lip/cheep-viagra-uk Soap female buy should this http://auger-traduction.fr/zed/cialis-cheap-prices this s love cream dose viagra do to a girl and was now bottle store more me The product decided query lowest cialis price online be along remember worked viagra no prescription online cheap design make causes,.

wrong direction? That’s truly impressive—also in the wrong direction.


advertisement

2 Comments | Read At JCPenney, Everybody Gets A POS iPod In March

  1. L in midwest Says:

    The issue with online sales is lack of stock, along with web page design/implmentation problems. Out of 246 different dress choices, they had ONE in my size.

  2. Oisin Says:

    Good move on their parts but I feel like its to little to fight the changing of the times. They need to get really good online and having their offline presence augment their online.

Leave a Reply

Readers, specifically those who want to comment on a story:
Our Comment SPAM system is getting very aggressive these days and has been blocking legitimate comments. If you post a comment and don't see it appear within 2 hours or so, can you please send a heads-up to customer-service@storefrontbacktalk.com? Ideally, please include the time you posted the comment. That will allow us to try and hunt for it. Thanks! P.S. We're working on fixing the system, but we don't want to lose any valuable comments in the meantime.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 17,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.