J.C. Penney Gift Certificate Concerns :: GCSE Business Marketing Coursework

J.C. Penney Gift Certificate ConcernsJ.C. Penney Company, Inc. has recently introduced a new point of gross revenue event (POS) transcription developed by NCR Corporation into their stores. In the first six-spot months of operation, it has become app bent that there are unanticipated problems with the business relationship and manoeuvre functions pertaining to sacrifice certificates. The new POS system does not provide for adequate introduce or control of the certificates on the gross sales embellish, store level sales audit has inadequate procedures or data capture capabilities in move into to track sales accu computely and assign responsibility for missing certificates, and collective accounting has no control over the gift certificate accounting on the store level and are constantly struggling to nail down gift certificate information.Problems on the Sales FloorAt the POS terminals on the sales floor, gift certificates are being stored underneath the cash muniment in a drawer with no shelter or control. The security and control of gift certificates has been overlooked during the drafting of the procedures for the new POS system. As a result, the security and control on gift certificates on the sales floor that had been in place with the old system has simply stopped. Employees are stringently on the honor system.When sales associates ring up a gift certificate sale they have to key 1) the appropriate twelve-digit SKU from a tilt of 3 choices, and 2) a horse value for the gift certificate shown on the face. For example, SKU 1 represented the $25 gift certificate, SKU2 represented the $50 gift certificate, and SKU 3 represented the $100 gift certificate. After the sales transaction is complete, the sales associate must manually record the buck value of the gift certificate on their cash audit report. During times of high volume, sometimes this final step is overlooked.Typically, the cashiers are just keying SKU 1 for any gift certif icate sale and keying in the appropriate dollar value from the face of the gift certificate. The SKUs are not electronically tied to a dollar value. This is a limitation of the previous POS system that was not addressed during the testing stage of the new system. Therefore, the error rate is very high and discrepancies in gift certificate sales are common. At the close of the shift, an electronic cashier report is generated on the cash register that just shows a total dollar amount tied to a SKU.