Fake J.C. Penney Prices Are No More, Store Says

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Fake J.C. Penney Prices Are No More, Store Says
[ Business]

It’s a rather sneaky way of doing business, but getting into the heads of customers and making them think they’ve gotten a better deal than they actually have is something retailers have been doing for decades. Rather than putting a fixed price on an item, they’ll put an original price–often jacked up to twice what they’re really selling it for–as well as a sale price. Finding a cute top for $40 is much more of a steal when you find it marked down to $15 or $20, right?

That’s what retailers are hoping you’ll think, and the practice is called “anchoring”, meaning your perception of the item’s value is set right away. Seeing it marked down to half or less than half off means you’re more likely to buy it, even if you might not need it, and in today’s economic downturn, that’s the last thing shoppers want to do.

Stores are catching on to what their customers want, however, and J.C. Penney is one of them. Part of a new overhaul for their entire system includes pricing items at what they actually are–“Everyday Prices”–which will not be reduced in weekly sales. Instead, the store will conduct month-long sales on certain items, and clearance sales will be on the first and third Friday of every month. Every item will have a new simplified tag to keep customers from getting confused, and that includes setting prices at a flat number instead of ending in .99.

J.C. Penney saw a sharp decline in sales over the past several months compared to their competitors, and Ron Johnson, C.E.O., admits he knows why.

“Our stores are tired; they haven’t been updated,” he said. “So customers ignored us 99 percent of the time. At some point, you, as a brand, look desperate if you have to market that much.”

Fake J.C. Penney Prices Are No More, Store Says
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  • Florene Smith

    Finally a store has discovered that consumers are not really stupid! We have waited for years fo someone to recognize our intelligence. The mark up to mark down and the 98 and 99 cent price endings are so tired. We have been aware for years that we were being “played” by the mariketers, and not just by J. C. Pennys but by all of the retail srores.

    • John

      There have been stores out there like this. They are Walmart, Target, and Dollar General.

      You have no idea what the retail price was or what the company paid for the item.

      There is a mathematic way to determine original price.

      People shop department stores looking for deals with their reward cards and coupons.

      Not because they can purchase the same product any time at any price. That takes the fun out of the game.

      Look at real department stores. There are not many around most are following walmart and kmart and then wonder why they are not making walmart and kmart sales.

      Many department stores have “Every Day Value” items. the price is the same all season long. suppose to be the lowest price possible. Most of these racks have just as many items on it at the beginning of the season then at the end.

      JCP needs to go back to their roots.

  • Brandon

    I work in retail..bigger ticket items…when you switch to everyday low pricing, people still want to get it on sale and will beat ya up over it, they don’t understand the concept, so this will be destined to fail as well.

    • John

      I agree with you.

      JCP has tried this before and their last CEO lost his job over the shortage of sales. The difference in the discount store shopper and the department store shopper are many things. One of which is their sales. I do not even look at Walmart or Target clearance in any department. I don’t know what the MFR is and I only see a difference in a few dollars in price. If I didn’t want it last week why do I want it this week for $3 less.

      Everyone not only enjoys a sale but also the coupon. Coupons and reward cards are why people shop department stores. Not to go in today and get the same price you could had gotten last week or the next two weeks.

  • Reality

    So Ron’s approach is to just take the entire body of research concerning consumer behavior that’s been established and well documented and.. completely ignore it.
    Did anyone tell him that discount retail is not the same as Apple? When you’ve successfully marketed a product with snob appeal to masses that salivate at every update regardless of price, you’re in a different ball game than a price sensitive consumer.

  • http://whatisvaping.com Electronic Cigarettes

    Just more deceptive advertising techniques… Of course it works!

  • Kiss JCP goodbye

    “The store will conduct month-long sales on certain items”? So these items were not jacked up, then lower for a 30 day sale? Really? Some fair and square pricing.

    Come on people Ron thinks you are an idiot, confused by 0.99 cent vs $1.00?

    With Ron’s plan, he gets to jack up his prices, move about the store discounting a little merchandize for a month, then back up in price, so basically it was over priced to being with.. Once he has done this for the whole store he can start the cycle over. With coupons the discount was across all or huge parts of the store, you didn’t have to keep running out burning gas to visit JCP, my life doesn’t revolve around JCP.

    Amazing if anyone thinks this is better than coupons, it is worst, getting rid of in house brands that carried the store isn’t a good idea either. It seems Ron bagged a lot, oh you will hear they are still around under the generic JCP label, half truth, what stuff is under that label is cheaper looking over the old and Ron is rumored to be firing those people responsible for designing and creating the old brands at his Valentine Massacre coming with another firing at home office.

    So, you tell people their favorite in house brands have just be collapsed under one label, JCP, then you ax a huge percent of that brand. This is clever. Shame no one is buying it.

    JCP isn’t no bargin, check Target which carries some of Ron’s upscale designer stuff, girls dress for $99, clutch bag $79. Target dropped the price of that fad, ugly as it gets junk to $49 on the dress to try to move it. They didn’t sell much. Yeah, Ron is just putting in the same crap as Target. If you have to buy this stuff buy it from Target, that Other Price seems to be the highest he can find.

    Think hard about it, 99 cent vs dollar? Come on. Needlessly pissing on buyers via of sticking a JCP label on in-house? Why? 30 day Easter egg store hunt? No, sorry Ron, no amount of lipstick, or lip service is going to improve this pig.

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