As he toured a J.C. Penney store before undertaking one of retailing’s most ambitious overhauls, Chief Executive Officer Ron Johnson bristled when a colleague suggested that he test his new no-discounts strategy at a few stores before rolling it out at all 1,100.
“We didn’t test at Apple, ” the executive recalled Mr. Johnson, hired away from the gadget maker, saying.
Seven months later, sales at the new Penney had dropped by double-digits.
Well, yeah. Apple doesn’t discount because they sell stuff that people really, really want and that they can’t get anywhere else. And they don’t test because Steve Jobs refused to.