JC Penney is Doing Away with Sales

1/26/2012 12:56:00 PM 1
JC Penneys Feb 2012 Catalog
I don't actually shop at JC Penney too much, but i happened to hear last night on the news that they are no longer going to have constant sales as part of their pricing structure, but instead will mark everything down 40% and go from there. I am very interested to see how it will work!

The increased discounting has been a vicious cycle that only feeds into shoppers' insatiable appetite for bigger and better discounts. In fact, whereas it took 38 percent off to get shoppers to buy 10 years ago, it now takes discounts of 60 percent, Johnson says.

At Penney, the regular price on an item that costs $10 to make rose 43 percent, from $28 in 2002 to $40 in 2011. But because of all of its sales and other promotions, what it actually ended up selling for rose only 15 cents, from $15.80 to $15.95 during that same period.

This is a very interesting article, and I think that Ron Johnson, Penney's new CEO and former Apple / Target alum is onto something.  If you get a chance you should read it all. It covers the new pricing strategy in detail.

Article: JC Penney Gets Rid of Sales


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1 comment :

  1. AnonymousJanuary 26, 2012 at 8:32 PM

    I'm interested to see how this works out as well. I know it's getting to the point where I won't even go to Kohl's without a coupon in hand and I feel silly paying full price for anything at Macy's. I get so tired of playing games and jumping through hoops to avoid paying the price on the tag, but it seems silly to do that when you know you can get it for less.

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