J.C. Penney Brings Back Commissions to Boost Turnaround

J.C. Penney Co. is reviving sales commissions, reversing Ron Johnson’s decision to kill the practice during his tenure, as the battered department-store chain seeks to ignite revenue growth and persuade high-performing employees to stick around.

Beginning next month, the retailer will start compensating more than 3,000 staff members for their sales chops, Daphne Avila, a J.C. Penney spokeswoman, confirmed in a phone interview. The move is designed to sell more fine jewelry and home furnishings, she said. Avila also said J.C. Penney will cut hourly pay for these workers while declining to disclose by how much or what percentage they’ll receive in commissions.