There is something about J.C. Penney mall-within-a-mall strategy that I am not able to see but something Macy’s CEO Terry Lundgren can do and he is really wary about the same.

Macy's CEO testifies in fight over Martha Stewart

Macy's Inc. and J.C. Penney Co. duke it out in court over the partnership with Martha Stewart Living Omnimedia. The trial, which began Wednesday, focuses on whether Macy's has the exclusive right to sell some of Martha Stewart branded products such as cookware, bedding and bath items.

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In the home area, exclusivity is key. Lundgren testified on Monday that Macy's had built the Martha Stewart brand to be the biggest in its home business. Sales last year were up 8 percent, double the rate for the entire company.

Lundgren said Macy's has spent 40 percent of its overall marketing on the Martha Stewart brand and other labels in the home area, even though the home category represents 17 percent of total sales. That's because even though the home area is typically slow turning, it drives shoppers to the store.

"I need the Martha Stewart business to be exclusive," Lundgren said. "I don't have a substitute."

The more I think about it, the more it feels that what Ron is trying to build at JCP is a conglomeration of big, well known brands, something which will drive traffic to the store.

Look at the bright side, it took all of one quarter for JCPenney to revert back.

Penney tries to clarify message on pricing change

J.C. Penney Co Inc is bringing back the word "sale" in its advertising in hopes of stemming a sharp slide in business.

The department store operator has been trying to wean shoppers off the long-used hundreds of sales events and coupons -- as part of a strategic overhaul by Chief Executive Ron Johnson. The chain blames the way it has communicated the strategy for contributing to a steep drop in sales in the first quarter.

Johnson said he recognized that shoppers did not understand the advertising of the new pricing model.

"It's just been kind of confusing," he said Tuesday at a Piper Jaffray investor conference in New York that was also webcast.

The new strategy includes some items on sale for an entire month rather than the shorter-term sales events of past.

But the retailer has avoided using the word "sale," instead calling the events "month-long values." That didn't work.

At Stores, Making 5 for $5 a Bigger Draw Than 1 for $1

Three 12-packs of Pepsi are selling for $12.99 at Stop & Shop grocery stores. Ten cans of tuna, or 10 bags of marshmallows, are going for $10. Six ears of corn for $2. Ten containers of Meow Mix cat food for $5.50.

Want just one each of those items? Well, yes, you get the same discount in most cases. But grocers would prefer that you think bigger. Like most retailers, they are feeling the pinch as people spend less these days. So they are playing a multiples game to entice shoppers to buy more than their shopping lists dictate.

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“We look at the customer buying behavior, and that’s how we land on multiples — to get customers a little higher than their typical purchase rate,” said Tom O’Boyle, executive vice president for merchandising and marketing at the Great Atlantic and Pacific Tea Company, which owns grocery stores including Pathmark, A.&P. and Food Emporium.

Quantum Retail’s retail insights blog, The Profit Lab recently covered 10 different strategies to consider in the process of executing allocations. Allocation is one of the most often overlooked areas to optimize retail and gain profit margin. Definitely a MUST READ for every retailer.

Introduction: Why allocation is your best opportunity to improve revenue and profit
Strategy #1: Understand your demand to achieve better allocations
Strategy #2: Learn the unique behavior of each store before clustering it
Strategy #3: Make time to analyze your assumptions for like products
Strategy #4: Consider product life when creating allocations
Strategy #5: Overcome limitations to forecasting by using better data
Strategy #6: Update plans with changes in customer demand as frequently as possible
Strategy #7: Test the opportunity in a second allocation shot in short life merchandise
Strategy #8: Create product strategies to understand each store’s true need
Strategy #9: Go beyond sales and inventory units to factor in profitability and other metrics
Strategy #10: Use constraints that minimize work and maximize results

You can even download the complete series in one PDF here.