J.C. Penney To Customers – No Sales For You! [Poll]
J.C. Penney has just announced that in lieu of sales throughout the year, they are permanently slashing prices by at least 40-percent on all of it's merchandise so shoppers no longer have to wait for sales. Next Wednesday, February 1st, Penney's will offer a three tiered pricing strategy that includes 'Every Day' low pricing, 'Month-Long Value' discounts on some merchandise each month and clearance deals called "Best Prices" during the first and third Friday of every month when customers get paid.
The strategy is similar to Wal-Mart's everyday low pricing strategy, but rather than try to undercut a competitor, Penney's is trying to establish more predictable pricing.
Some experts say the new plan is risky because shoppers like bargains and like to actively seek bargains. Citi Investment Research analyst Deborah L. Weinswig says, "The big question on investors' minds will be: 'How customeres will react to a single price point versus a perceived discount under the old Strategy?"
Bottom line, all retail eyes are focused on J.C. Penney right now and only time will tell if the new strategy will work. The biggest challenge the retailer will have is selling customers on the idea of no sales, but lower everyday prices.