Clearance racks could be a thing of the past as retailers rush to emulate JC Penney.The department store chain caused a stir when it announced its “fair and square” pricing strategy earlier this year. The retailer claimed that keeping things at one low price would draw people to the store all year instead of just for sales and special promotions.
“The feeling of you have to buy it today or it might be gone tomorrow brings an excitement to shopping that consumers haven’t seen in a long time,” Alison Paul, who heads the retail sector at Deloitte, told us. “People get a feeling that the product is fresh instead of dirty and picked over in a clearance bin.”
There’s more to the strategy than fresh marketing, Paul says. It’s also more affordable for stores because they’re not devoting manpower to rearranging the store for constant markdowns.
A big survey indicated customers indicated the model was a hit, with 20 per cent of shoppers saying they’d shop more with the new prices.
“Other stores might not be coming out and announcing that this is their strategy,” she says. “But we’re going to see a lot of places beginning to adopt this model.”
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