JC Penney Will Woo Customers By Ditching Sales Events

If you’re a JC Penney shopper you’re probably well aware of the company’s constant barrage of sales, in fact after a while it seems like they pretty much always have their merchandise marked down. In fact during the 2011 shopping season their were 590 sales at the store, more than one per day.

That’s why the company’s new CEO/former Apple executive Ron Johnson is ditching the company’s strategy and cutting out most sales entirely.

While that might seem like a foolish idea his strategy to cut prices and offer specific sales actually makes a lot of sense.

Under the CEO’s new plan the company will mark down all of its merchandise by 40% or more on a permanent basis in a move called “Every Day” pricing which goes into effect on Feb. 1. The store will then launch new longer term sales. For example a Red tag on clothing and other merchandise means “Every Day” price, while a white tag is a “Month-Long Value” and a blue tag indicated the “Best Price” which is the lowest price the store will offer on an item.

In terms of “Month-Long” values those sales will be used to promote specific events or time of the year such as Valentine’s Day when for example all jewelry in February will be marked down.

The company will also place under performing merchandise on clearance during the first and third Friday of the month under the “best prices” tag.

The company is also dropping “decimal pricing” moving items from $19.99 to $19 or $20 respectively.

It’s still unclear as to whether or not such a plan will work, what we do know is that in 2002 JC Penney was selling $10 items for $28 and typically selling the items on sale for $15.80 however those sticker prices have skyrockets to $40 or 43% with bargain pricing now sitting at $15.95.

Would you be more willing to shop at JC Penny stores when the everyday pricing on merchandise was dramatically cut down.