Retailer J.C. Penney Goes Back to Commission Plans for Future Growth

J.C Penney announced this week the closing of 33 stores nationwide in order to turnaround the company.    Part of the new strategy is to re-implement commission plans per company spokeswoman Ann Marie Bishop “for its salespeople in the window coverings, furniture and fine jewelry departments”.   She further commented in an email to the LA Times “Offering a competitive salary base that includes a commission incentive not only helps in retaining some of our best sales associates, it motivates them to build and maintain stronger customer relationships.” J.C. Penny is reversing a sales strategy that eliminated commission plans and discount programs under former CEO Ron Johnson who was previously with Apple.

Developing a sales commission plan can be so important to any organization if properly managed.  The sales team is putting their faith in management to account for the commissions in a timely and accurate manner or all the goodwill will evaporate and the future of the franchise retailer will be in jeopardy.  Sounds like the new management team recognizes the importance of closing unprofitable locations and increasing the customer experience by incentivizing the sales associates.

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