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JCPenney is allegedly pushing some manufacturers to come up with higher suggested retail markups for their clothing so that the retailer can list its own prices lower, according to James Covert at The New York Post.”Fake prices are coming back at JCPenney,” wrote Covert. “And this time they’ll be more fake than ever.”
According to The Post’s sources, JCPenney wants to put up signs that show the “sometimes made-up” suggested retail prices. However, the clothing itself would be tagged with JCPenney’s own retail prices, which will be set lower.
“They want to have a table of sweaters with a sign saying ‘regular price, $30,’ and the price tag will be $22,'” a source explained to The Post.
CEO Ron Johnson has been tweaking the department store’s pricing strategy since his initial bid to kill coupons and sales failed.
In its marketing, JCPenney has been constantly touting “fair and square” pricing since Johnson took the helm, promising to make things simple for customers.
“Aren’t you now going back to fooling the customer the way you said you wouldn’t?” an exec at one supplier told The Post. “Are we now saying, ‘Never underestimate the stupidity of the American consumer?'”
The Post also reported that JCPenney is demanding the vendors put the prices in writing so that they have documentation to back up the pricing claims.
We’ve reached out to JCPenney for comment and will update this post if we get a response.
Work for JCPenney? Shoot me an email at [email protected].
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