Social media in the last 5 months has become a major access platform for consumers. Even though, sporting events and concerts aren’t an option an individual could still shop till they dropped virtually. Social media has seen a huge increase of sales for retailers by helping companies stay afloat, and meet their quota. However, JCPenney’s was not one of them. JCPenney filed for bankruptcy this past may due to a lack of advertising during the Covid-19 pandemic. The bankruptcy has caused for over 840 stores to close in the next two years.
During the pandemic retailors alongside JCPenney’s such as Old Navy and Kohls, had to reujust their branding and advertising goals. Those left behind saw a major decrease in sales that led them to the same end result as JCPenney’s.
For Old Navy and Kohls the average consumer took to social media and the internet to shop. These companies displayed around 80 percent or more, increase in sales. Leaving the fellow competitor, JCPenney, with only a 12 precent increase.
Unfortunately, JCPenney’s audience is around 55 years old, and is not a common user of social media. Despite this setback they failed to promote their brand, by offering sales, shipping discounts or even invest in advertising for their online stores.
This failure to adapt to a sudden shift to social media platform was an advertising nightmare. Advertising has become an essential part to marketing in this new era. The partnership between the two is now the primary source of income for retailers, and without one or the other the business may fail.