The sales declines came in spite of strong sales in the new "shops." The extent of the deterioration was made clear by J.C. Penney's recently reported first-quarter 2013 results. This was the first quarter of "easy comps," and provides a direct comparison between the results of Johnson's original pricing strategy and the revamped strategy. Sales decreased 16.4% and the adjusted loss of $1.31 per share was far worse than the $0.25 loss per share experienced in the first quarter of J.C. Penney's transformation. Foolish conclusion While Johnson made a lot of mistakes at J.C. Penney, none can really compare to his misreading of the initial reception of his plans. In August, rather than stepping up promotional activity to improve sales, Johnson decided to double down on the "Everyday" pricing strategy. This was clearly the wrong reaction. Only after this change did J.C. Penney's performance turn from weak to disastrous, putting the company's survival in doubt.