Member access

4-Traders Homepage  >  Shares  >  Nyse  >  J C Penney Company Inc    JCP   US7081601061

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Penney To End Commissions For Some In Favor Of Hourly Wages

05/11/2012 | 07:45am US/Eastern

(This article was originally published Thursday.)

 
 
   By Karen Talley 
   Of  
 

J.C. Penney Co. (>> J.C. Penney Company, Inc.) is ending the practice of paying commissions to employees in certain departments, a move seen saving the retailer money and furthering its transformation under Chief Executive Ron Johnson.

Company spokeswoman Kate Coultas said the affected workers will be put on hourly wages and that the moves "enable our teams to be even more effective in winning the hearts and minds of our customers."

Coultas didn't elaborate.

The moves affect sales staff in fine jewelry, shoes, window coverings, men's suits and some in salon. The changes take effect this month.

"Our new business model requires that we move away from a commission-based environment so that every team member is motivated by meeting the needs of our customers," Coultas said. "Therefore, our commission pay plans will move from a commission-based structure to a competitive hourly rate structure."

The move is the latest store-level change at J.C. Penney, which last week let go an undisclosed number of store staff at its 1,100 locations, many of whom were in supervisory positions. J.C. Penney has also laid off 600 employees at its Plano, Texas, headquarters and an additional 300 will lose their jobs at the end of June when a Pittsburgh call center is closed.

The goal is for a more streamlined operation, CEO Johnson has said, as he tries to remodel Penney from a stodgy department store into an array of shops-within-shops that eschews promotions. Johnson joined Penney in November after heading Apple Inc.'s retail stores.

Signs of how the business plan is doing will be offered next week, when Penney reports first-quarter results.

-By Karen Talley, Dow Jones Newswires; 212-416-2196; karen.talley@dowjones.com

Stocks mentioned in the article : J.C. Penney Company, Inc.
React to this article
Latest news on J C PENNEY COMPANY INC
04/25 Up to 150,000 Bangladesh workers lost jobs after Rana Plaza safety overhaul
04/23 J C PENNEY : JCPenney Debuts New Bedding Collection with Eva Longoria
04/16 J C PENNEY : JCPenney Named One of America's Best Employers for 2015
04/16 J C PENNEY : House Energy and Commerce Subcommittee on Commerce, Manufacturing, ..
04/15 J C PENNEY : Penney for your thoughts
04/14 J C PENNEY : JC Penney Learns That You Have To Share Your Mistakenly Released Sa..
04/14 J.C. Penney says executive inadvertently disclosed same-store sales
04/14DJPenney Sees Same-Store Sales Up 3.5%-4.5% in 1Q
04/14 J C PENNEY : JC Penney expects 1Q key sales metric to top Street's view
04/14 J C PENNEY : Regulation FD Disclosure (form 8-K)
Advertisement
Chart
Duration : Period :
J C Penney Company Inc Technical Analysis Chart | JCP | US7081601061 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF