What do you think of the new pricing strategy (40% lower Every Day prices) J.C. Penney announced?
Essentially, all merchandise will be priced lower every day, with the only sales monthly ones (Month-long Value) mostly on seasonal products and clearance markdowns twice per month (Best Prices) on merchandise not selling well. Penney is banking on most consumers preferring lower prices all the time without having to bargain hunt. That said, the Month-long Value and Best Prices deals may provide enough bargains for the "born to shop" group. Do you think this strategy will be successful for the retail store? Will you prefer this type of pricing? Why, or why not?
I sounds like a good idea, but falls in the trend of liquidation of merchandise. JC Penney has taken a hard hit, as have similiar merchants over the course of the years from Wal-Marts, Targets, etc. I think it's just a bandaid to a bigger scab and that this may be the beginning of the end for JC Penney. Sears will be next.
I think that this may make a point of difference against other retailers (is being tried here in Australia by Kmart - lowest prices all the time) and it could lead to competitive advantage, or it could be the last desperate step by the retailer to get short term sales while sacrificing margin.
This can only work in the long term if J.C. Penny changes their buying strategy to buy the same quality at a lower price that they can then on pass to their customers.
I go where I can get the best deal.
So I think it's a smart plan.
If Penneys is in trouble, I hope this works, but frankly even if the stuff is $10 an item, it won't give the consumer more money to shop with. I rarely shop anymore because nothing is that important to me as having a little money in the bank.
Retailers (like JC Penney and others around the world) call this a strategy.
What it really is, is a tactic.
A Survival tactic.
Cross-boundary (international) online shopping, the global recession, people's changing attitudes towards paying for the 'ambience' of bricks and mortar stores, as well as covering the real-world costs that retail pricing must build into their pricing, all add up to a mind-numbingly challenging tsunami of permanent change.
The (profitable) solution to which, in my opinion, (watching survival tactics being PR'd and spun as Business Strategies) evades the intellectual capabilities of most of the current retail industry bosses, and boards.
The retail revolution cometh. Just waiting for new leaders to emerge.
You did ask for opinions, Jaye...
Actually, - please forgive the promo, but it's on topic, I just posted a hub called 'The High Cost of living? Nah, it's just Priorities.', which seems to have struck a chord with people already attuned to the new reality facing all of us.
by Linda Liebrand 4 years ago
How important is it for retailers to show their prices clearly in order to make sales?In other words, if you walk into a small shop and there are no price tags on any of the products - what do you do? Would you bother asking about all the products you're interested in, or just leave it and walk out?
by Nadyne Rossetti 8 years ago
Can you give me an idea of pricing for trashouts?
by scottie g 5 years ago
Do you think real estate prices in your market will be higher or lower in 1 year?Please include your area of the country or closest major city
by Tony Lawrence 7 years ago
rebekahELLE posted this link in another thread: http://www.nytimes.com/2011/02/13/busin … r=2&hpIt tells the tale of how J.C. Penney has been SERP punished for excessive backlinking.We've been told over and over again by certain Big Names here that Google can't do that.They can and they...
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