J.C. Penney Revamps Pricing Strategy
PLANO, Texas-J.C. Penney has overhauled the pricing strategy it announced in January by eliminating its month-long value pricing and renaming its Best Price program "clearance."
The original pricing strategy encompassed its everyday-low-price element along with month-long values, which highlighted special pricing on items in each month of the year; and what the retailer called Best Price, which involved clearance merchandise. Daphne Avila, a J.C. Penney spokeswoman, told HFN, "Customers didn't understand if we had great everyday prices, why we needed to have month-long-value-priced items (or month-long sales), which were priced even lower. Our results this past spring showed that nearly 70 percent of our sales came from our everyday prices, reinforcing that the first price should be the right price customers are willing to pay."
By taking away the month-long-values component, J.C. Penney is thus committing to offering one low price every day, Avila said. It has also changed the clearance element by calling these events "clearances" rather than "Best Price." It will also offer clearances every Friday beginning this Friday, Aug. 3. Previously, J.C. Penney had held these clearances on the first and third Fridays of each month.
"When it's time for the product to go away to make room for something new, we will call it what it is: clearance," Avila said, "and it will be marked down for a clearance price so it moves quickly."