JCPenney (JCP) to Announce New Pricing Initiatives
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JCPenney Co. (NYSE: JCP) managers are taking a page from "Bill & Ted's Excellent Adventure" and getting radical on its operations (sorry to those who are disappointed the company isn't attempting to time travel in a rush to get a school project done!).
The changes, however, are a little comical.
According to the WSJ late Monday, JCPenney is going to cut down on the "mind-boggling" task of finding out what something costs. For example, discount signs for in-season merchandise will be eliminated, with discounts made on the clothing before being placed on the floor.
Always wondered why prices end with ".99" or ".95?" Wonder no more, because at JCPenney, they're going to eliminate the retail tomfoolery. Something priced at $19.99 will now be labeled $20 even. No gimmicks.
Those items with a discount will be part of JCPenney's "Red Zone," and be clearly labeled as such.
The WSJ notes a positive from the change will be clearer pricing, but the downside is consumers will not see what they've become accustomed to at retailers: lots of discounts.
Former Target (NYSE: TGT) and Apple (Nasdaq: AAPL) executive, Ron Johnson, who recently became CEO of JCPenney, is expected to make the announcement later this month.
Whether the new strategy will pan out or not will show up in monthly retail sales and quarterly reports. JCPenney has been struggling with sales over the last few months, and is expected to report lower fourth-quarter numbers compared with the same time last year, despite stronger overall sales in the U.S. market.
Honestly, we expected JCPenney to adopt a cleaner layout with lots of curved white surfaces, tables neatly lined up and sparse, and welcoming all sorts of pets into the stores (ala an Apple store), but this plan could work too...
The changes, however, are a little comical.
According to the WSJ late Monday, JCPenney is going to cut down on the "mind-boggling" task of finding out what something costs. For example, discount signs for in-season merchandise will be eliminated, with discounts made on the clothing before being placed on the floor.
Always wondered why prices end with ".99" or ".95?" Wonder no more, because at JCPenney, they're going to eliminate the retail tomfoolery. Something priced at $19.99 will now be labeled $20 even. No gimmicks.
Those items with a discount will be part of JCPenney's "Red Zone," and be clearly labeled as such.
The WSJ notes a positive from the change will be clearer pricing, but the downside is consumers will not see what they've become accustomed to at retailers: lots of discounts.
Former Target (NYSE: TGT) and Apple (Nasdaq: AAPL) executive, Ron Johnson, who recently became CEO of JCPenney, is expected to make the announcement later this month.
Whether the new strategy will pan out or not will show up in monthly retail sales and quarterly reports. JCPenney has been struggling with sales over the last few months, and is expected to report lower fourth-quarter numbers compared with the same time last year, despite stronger overall sales in the U.S. market.
Honestly, we expected JCPenney to adopt a cleaner layout with lots of curved white surfaces, tables neatly lined up and sparse, and welcoming all sorts of pets into the stores (ala an Apple store), but this plan could work too...
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