Did J.C. Penney Make a Mistake Eliminating Sales Commissions?

Along with the bigger news of plans to close 33 stores leading to the layoff of 2,000 workers, J.C. Penney also revealed last week that it was reinstating commission pay for associates in its window coverings, furniture and fine jewelry departments. The switch, set to occur in February and March, will affect more than 3,000 associates. "Offering a competitive salary base that includes a commission incentive not only helps in retaining some of our best sales associates, it motivates them to build and maintain stronger customer relationships," the company stated in an email sent to media outlets.