Posts tagged with Daily Deal

J.C. Penney shows the danger of the discount

Before Ron Johnson joined department store giant J.C. Penney as CEO in 2011, he was the SVP of Retail Operations at Apple Inc., where he was responsible for developing the Apple Store and its Genius Bar.

Apple's retail strategy was a major contributor to Appl'e's mind-bending success over the past decade, and for his seven-plus years of work, Johnson was handsomly rewarded.

Needless to say, given Johnson's accomplishments at Apple, J.C. Penney shareholders had high hopes for what he might do for the century-old retailer.

Earlier this year, Johnson unveiled his bold vision: radically alter J.C. Penney's pricing strategy.

Instead of using coupons and discounts, something the department store had done extensively for years, J.C. Penney would offer "Every Day", "Monthly Value" and "Best Price" prices on its merchandise. And instead of selling items for $x.99, it would use round numbers.

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Has reality finally caught up with Groupon and the daily deal?

Questions over the long-term viability of the daily deal model and Groupon's finances emerged well before the company went public.

But these questions didn't stop the company from debuting in what was one of the biggest technology IPOs since the first .com boom. Apparently hungry for tech IPOs, Groupon shares popped 31% on their opening day.

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