Parsad Posted January 25, 2012 Share Posted January 25, 2012 JC Penny's is changing their whole pricing structure. No more sales and regular everyday pricing discounts on merchandise. Cheers! http://finance.yahoo.com/news/j-c-penney-gets-rid-151954852.html Link to comment Share on other sites More sharing options...
tooskinneejs Posted January 25, 2012 Share Posted January 25, 2012 As a consumer, I welcome this kind of change. I've always thought that the traditional M.O. of department stores (namely, making the consumer work to get a good deal by watching for sales and bringing in coupons such as "20% off plus an extra 10% off") ran counter to serving the best interests of customers. What kind of relationship do you foster with your customers when you make them jump through hoops to get a good price? I haven't been into a JC Penney store in probably 10 years. But this type of change might actually get me to go in and at least take a look. I also like the idea of rounding off the pricing to the nearest dollar. It's a little thing, but I think it helps lessen the cheap feel of the shopping experience. Link to comment Share on other sites More sharing options...
PlanMaestro Posted January 25, 2012 Share Posted January 25, 2012 As a consumer, I welcome this kind of change. I've always thought that the traditional M.O. of department stores (namely, making the consumer work to get a good deal by watching for sales and bringing in coupons such as "20% off plus an extra 10% off") ran counter to serving the best interests of customers. What kind of relationship do you foster with your customers when you make them jump through hoops to get a good price? I haven't been into a JC Penney store in probably 10 years. But this type of change might actually get me to go in and at least take a look. I also like the idea of rounding off the pricing to the nearest dollar. It's a little thing, but I think it helps lessen the cheap feel of the shopping experience. When I was in retailing, I saw people trying to emulate Wal-Mart's every-day-low-pricing without their every-day-low-cost to disastrous consequences. I suppose that is not their plan so I can only speculate that they might be planning to move to be more of a niche player with a more exclusive product mix, a reduced footprint, and higher gross margins ... like an Apple store? Link to comment Share on other sites More sharing options...
biaggio Posted January 25, 2012 Share Posted January 25, 2012 Will be interesting to see how it works out for them. Agree with comments from PLanMaestro above. I think its risky when you re selling commodities like JC penny. Works well for non commodities-Its rare to see discount pricing at Apple store, and I have never seen a mercedes or Porsche dealership with 40% off sale---I have purchased many apple products + have never experienced buyers remorse . Link to comment Share on other sites More sharing options...
FCharlie Posted January 26, 2012 Share Posted January 26, 2012 JC Penny's is changing their whole pricing structure. No more sales and regular everyday pricing discounts on merchandise. Cheers! http://finance.yahoo.com/news/j-c-penney-gets-rid-151954852.html I think the most interesting part of this as it relates to Sears is the idea of having stores within stores... Something Sears has scratched the surface of with Whole Foods, Forever 21, Edwin Watts, etc... JC Penney wants to make their stores more relevant, Sears probably just wants to lease under productive real estate. Link to comment Share on other sites More sharing options...
txlaw Posted January 27, 2012 Share Posted January 27, 2012 I have not read or listened to the JCP investor presentations yet, so I may be commenting too early. However, I can't help but notice that Target just put a call out to its suppliers to provide them with unique offerings that cannot be found online or to provide them with items that will be priced competitively with similar/identical online goods. They want to combat the showroom effect. Perhaps that is what JCP is going to be doing as well? Hence the Sephora and Martha Stewart store within stores? Link to comment Share on other sites More sharing options...
BargainValueHunter Posted January 27, 2012 Share Posted January 27, 2012 Not to sound like a broken record but... http://www.cnbc.com/id/45688879 In 2009, the company was on the verge of bankruptcy and its stock was trading as low as 10 cents at the generational bottom. However, since then the company has been “one of the strongest performers out there,” Cramer said. The key, he said, was CEO Alex Smith’s strategy of shifting away from selling slow-moving big ticket items towards smaller, less-expensive pieces that sell more quickly. Eddie and Ron Johnson oughta give Alex a call... ;) Link to comment Share on other sites More sharing options...
farnamstreet Posted January 28, 2012 Share Posted January 28, 2012 Regardless of whether you're invested or not, I think most of you will find the *second* day presentation interesting. Link to comment Share on other sites More sharing options...
txlaw Posted January 28, 2012 Share Posted January 28, 2012 Have now watched both JCP presentations. Second day presentation is interesting and gives the basics to the Street. First day presentation is even more interesting and worth watching for anyone who is interested in (or invested in) retail. Link to comment Share on other sites More sharing options...
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