JCPenney CEO and former Apple retail chief Ron Johnson is making more adjustments to his pricing strategy at the retailer, reports Dana Mattioli at the Wall Street Journal.He’s getting rid of the monthlong specials that had cut prices by 20-29 per cent.
Instead, JCPenney will be permanently marking down a large chunk of its merchandise by around the same amount. The changes will take effect in August.
As the WSJ notes, it’s an acknowledgment that JCPenney needs to cut prices more deeply if it wants to get people back into its stores. It lost significant store traffic when it ended big sales events and coupons, which was a big reason former JCPenney president Michael Francis left the retailer.
In early July, JCPenney relapsed on its original pricing strategy when it decided to email thousands of discounts to its customers for July 4th.
This latest move further simplifies JCPenney’s pricing for consumers, which has been a major concern for Johnson. There will be everyday low prices, along with sales on certain items — nothing else.
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