JCPenney (JCP) CEO Johnson Begins Boosting Prices in New Discounting Scheme
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JCPenney (NYSE: JCP) CEO Ron Johnson is back at it again.
According to the NY Post, Johnson is doing an about-face and raising prices across the board. The move is in contrast to his initial idea of "fair-and-square" pricing, announced when he took office last year. The move eliminated discounting and simply offered low prices to customers, something that didn't sit well with current clientele.
The Post cites an example of Nike swim trunks. Previously priced at $25, the item now is priced at $45.
Sources told the Post that prices were restored from prior pricing lists. Everything from jeans to household items have seen an adjustment.
The strategy hearkens back to JCPenney's traditional structure of discounting. One source claimed that the entire women's apparel department, for example, is expected to be on sale most of the time, with discounts of 20 percent to 25 percent largely expected.
Johnson previously said during a CNBC interview that if he could do one thing over from the start, it would be the pricing strategy. Looks like he's finally tanking those comments and running with them.
No comment was issued from the company to the Post.
Shares of JCPenney are indicated for a lower open Wednesday.
According to the NY Post, Johnson is doing an about-face and raising prices across the board. The move is in contrast to his initial idea of "fair-and-square" pricing, announced when he took office last year. The move eliminated discounting and simply offered low prices to customers, something that didn't sit well with current clientele.
The Post cites an example of Nike swim trunks. Previously priced at $25, the item now is priced at $45.
Sources told the Post that prices were restored from prior pricing lists. Everything from jeans to household items have seen an adjustment.
The strategy hearkens back to JCPenney's traditional structure of discounting. One source claimed that the entire women's apparel department, for example, is expected to be on sale most of the time, with discounts of 20 percent to 25 percent largely expected.
Johnson previously said during a CNBC interview that if he could do one thing over from the start, it would be the pricing strategy. Looks like he's finally tanking those comments and running with them.
No comment was issued from the company to the Post.
Shares of JCPenney are indicated for a lower open Wednesday.
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