JC Penney brings greeters to retail stores

By Daphne Howland | October 10, 2016

Dive Brief:

• In a move that recalls Wal-Mart’s famous store greeters, J.C. Penney has begun rotating employees to the front of its stores to greet customers at some of its Northeast stores, according to the New York Post.
• The employees are existing full-time workers who spend two hours of their shifts — dubbed “power hours,” from noon to 2:00 p.m. — doing the task, an employee who is serving in that role told the Post. “We don’t know why it’s from 12 to 2, but we were told it would increase sales,” the employee told the Post. 
• The experiment is resulting in longer lines in those stores, and some employees are disgruntled with the idea, the Post reports. The report added that management employees have also been encouraged to sign up more customers for the retailer’s store-branded credit card.

Dive Insight:

Wal-Mart largely abandoned its longtime practice of having store greeters at the entrance of stores, ending it in 2012 to save money. But earlier this year, the retailer brought back the strategy as part of its efforts to boost customer service in stores and to deter thieves.

That retailer's push for store associates to greet customers and offer help, as well as an increased effort for better pay and training of those workers, is likely reflected in the improvements in Wal-Mart's customer experience measured by Cowen and Co. late last year. Cowen found that 75% of 2,506 Wal-Mart customers surveyed said they are satisfied with their overall shopping experience and 60% were satisfied with the customer service. Both measurements were the retailer's best in about two years, though they still lag behind rival Target. 

A few J.C. Penney stores visited by a Post reporter had no such greeters during the so-called “power hours” and it’s unclear how effective the practice would be, especially if it takes away from other tasks the employees need to accomplish. Greeting customers is one of many tasks that can only be done by actual people, in contrast to some inventory tasks that are now done by computers. If done right, however, it could help boost customer service and sales. 

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