Reuters seeks Brentwood Associates' expertise on J.C. Penney's new pricing strategy

Ron Johnson, known for helping create Target Corp.’s “cheap chic” appeal and Apple’s unique stores, was tapped by J.C. Penney last year to run the company. He recently commented that the department store chain would change its pricing strategy for the 2012 spring season. Reuters reports that the announcement has fueled speculation that the retailer will get rid of much of the deep discounting it is known for.
But retail executives and experts warn that the strategy could alienate J.C. Penney’s core clientele. According to Roger Goddu, partner at consumer-focused private equity firm Brentwood Associates, “If Penney moves to an everyday low price concept, they’ll lose a portion of those customers who only respond to price.” Goddu, a former Target executive, hired Johnson at the discount chain in the early 1990s. Goddu also commented that Johnson impressed him at Target when he re-thought the display of children’s clothing and made the chain a leader in that category.