The company said it increased marketing expenses in the second quarter in an effort to attract customers who fled stores in droves over the past year. JC Penny said it plans to boost investments in the second half, but did not provide specifics.
CEO Mike Ullman said that because 90% of most department stores' messaging is promotional, it's crucial for the retailer to compete head-to-head and ensure its message resonates with consumers on a "deep promotional level." He added that JC Penney is underdeveloped in social and digital channels.
"We are … working quickly and forcibly to strengthen our marketing and messaging to restore customer loyalty and excitement," Mr. Ullman said during a conference call with analysts. "This includes positioning JC Penney as a primary destination for Black Friday and Cyber Monday and [maintaining] the same momentum throughout the holidays."
