In its second-largest acquisition, Amazon buys the company for $970 million.
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The retailer also revealed a new logo design that is reminiscent of the American flag. It adds a blue square to a modified version of its existing red and white box design and also resembles a picture frame. J.C. Penney chief marketing officer Michael Francis says the logo and frame design will be featured in all brand representations in store, online and in advertising campaigns and marketing materials supporting J.C. Penney’s new retailing approach. Johnson says J.C. Penney will be spending $80 million per month to sell its new approach to consumers. That spending includes a TV ad campaign featuring comedian and talk show host Ellen DeGeneres—who will also talk up J.C. Penney on her show—stickers promoting the Friday sales on the front pages of 21 major newspapers, a monthly 96-page direct mail piece highlighting that month’s themed promotions and new products, and weekly distribution of 27 million inserts in Sunday newspapers.
On Thursday, consumers could see the first trickles of the media campaign supporting the changes. The home page of JCP.com included a clock ticking down to Feb. 1 that says "things are changing." It also features a tongue-in-cheek prompt promoting the "biggest, best-ever crazy and exhausting and totally confusing sale ever." Clicking the notice took consumers to Penney's Facebook page where they could play a discounting game and view a commercial that hinted at the changes coming to Penney's. The same commercial began airing on TV Wednesday.
“We are going to relentlessly introduce new products, and give momentum for this brand,” Johnson said. “It’s not going to happen overnight but I do believe it will happen.”