JC Penney Reinvents The Sale

Who knew the powers-that-be at JC Penney were such risk-takers?  In an effort to streamline and simplify their pricing, they will roll out a new sales strategy on February 1st. New CEO Ron Johnson (a former Apple exec) has decided to lower all Penney prices by at least 40%. Yep. That’s right. Down by a minimum of40% – permanently. The thinking is two-fold: to offer better everyday prices to its customers and to gently force consumers to decrease their habitual dependence on waiting for items to go “on sale.” We bet you’re wondering how exactly they’re going to accomplish this? Well, let us break it down for you. There are three integral steps:

  1. Every item will become a “sale item” as stated above, having its price reduced by 40% to be known simply as “Every Day” pricing
  2. Once month, select items will be tagged as “Monthly Value” items
  3. On the first and third Friday of each month, JC Penney will offer items at the “Best Price” – the deepest discount of them all

In addition, JC Penney will be changing their pricing to whole numbers i.e. $25 instead of $24.99, as well as using color codes to help customers quickly determine whether or not that marvy mustard cardi is a “Best Price” item (if so, it will have a blue tag, “Every Day” items – a red tag, and “Monthly Value” – a white tag).

What do you think of this new pricing model? Will you relish in the “Every Day” sale prices and run over every other Friday to check out the “Best Price” options? (The most genius part of this plan as it just so happens to coincide with payday.) Or is this no-sale sales strategy just confusing?

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Comments

    • TBF says

      agreed. and it doesn’t address the central problem.. you can’t beat forever21/target on the cool factor- however they could really own the 30-50 working women space.. So of like the cheaper, more accessible “Ann Taylor”

  1. Shoshana says

    Love it! Have you ever been to one of their candybar sales, where the discount on the wrapper can only be applied to non-sale items? The store near me is so small the nearly everything was on sale anyway so all the ended up doing was handing out free candy bars.

  2. Tamarus says

    I like the overall concept; 1. who can complain if they are lowering prices right out the gate, 2. specials that are ‘pre-scheduled’ beat random ones hands down, and 3. tiered pricing can be a good thing if one is willing to wait with fingers crossed that the coveted item will still be there on rock-bottom sale day.

    As long as they can continue to offer somewhat stylish, quality clothing I’m in like Flynn! Forever 21 doesn’t offer my size in store so accept for one- or two-time use accessories, I don’t go there and Target does limited edition contracts. At least with the new model at J C Penney’s I can better plan for shopping trips which makes staying on budget a bit easier.

  3. says

    Hi, I found you via blog her. Thank you for the explainer. My husband and I saw the commercial tonight and he was confused. lol. I plan to share this info with my readers:) Of course with proper credit.

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