J.C. Penney Co reported its worst drop in sales on Friday after CEO Ron Johnson's radical transformation of store operations, Reuters reported.
The chain reported a third-quarter loss of 26 percent and store traffic down 12 percent, the Star Tribune reported. This is the third consecutive quarter of losses Penney's has reported since it ditched coupons and sales events for everyday low prices.
Part of the problem has been customer confusion on the pricing, the Star Tribune reported. Johnson said the company will being putting the suggested retail price next to Penney's price on the tag to help eliminate this confusion.
Along with the low prices, Penney's has been working to convert its stores into a collection of boutiques, Reuters reported.
These new boutiques have generated more sales per square foot than the "old JCP" is, Reuters reported. These eight boutiques are generating $269 of sales per square foot, an increase from $139 in the older parts of the store.
"It's about the shops. That's the future of the company," investor William Ackman, told Reuters.