The View on Vendors
February 24, 2012,
SOURCE: JCP INTERNAL DATA.
The vendor's job, he added, is to design, source and deliver on time. The retailer's job is to market and sell. Vendors and retailers shouldn't be co-mingling their profits and "playing games."
JCP held a summit specifically for vendors during its visit to New York to outline the new plan. Johnson said vendors came away thinking it's all "too good to be true."
During a later summit for the financial community, an analyst asked if that means Penney will no longer demand markdown money. There was a distinct pause.
That would be a goal over the long run, said Johnson. Chief operating officer Mike Kramer jumped in to clarify, saying he is not opposed to vendor contributions but does object "when it becomes a drug."
In fact, throughout the financial session as execs described their plan to reduce costs by $900 million to "self-fund" the transformation of 1,100-plus stores, vendor participation was cited frequently - once in the form of making a "capital investment" in creating the shop-in shop formats.
Executives also said that as Penney converts the floor from its current format into 100 branded shop-in-shops, vendors will be invited to offer their ideas and vie for the real estate.
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