JCPenney: OK, We'll Bring Back the Word 'Clearance'
Six months after launching new pricing strategy, a new pricing strategy
By Kate Seamons, Newser Staff
Posted Jul 26, 2012 11:43 AM CDT
Shoppers enter a J.C. Penney store in Indianapolis, Tuesday, June 19, 2012.   (AP Photo/Michael Conroy)

(Newser) – JCPenney has apparently realized the whole no-more-sales move was a bad one. With its stock down almost 40% this year, the store is backtracking on its six-month-old pricing strategy by introducing yet another pricing strategy. In February, the department store canned its hundreds of yearly sales in favor of a three-tier pricing approach; now, it will stick with just two options, explains the Wall Street Journal: everyday low prices and clearance sales on select items.

Shoppers found the three tiers "confusing," said CEO Ron Johnson. Writes Dana Mattioli for the Journal, "The move is an acknowledgment that the department store chain needs deeper price cuts to stem a dive in sales caused by the company ending its ceaseless sales and coupons." She notes that Q2 results are expected to be dismal. The changes go into effect Aug. 1. (If that doesn't help the company, more tweets from Nina Garcia might...)

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Showing 3 of 6 comments
finkster
Jul 26, 2012 2:12 PM CDT
They'll raise the prices and then dramatically cut them in half with a sale so customers think their getting a great deal
right2dave
Jul 26, 2012 1:09 PM CDT
Pennys gave consumers to much credit. Retailers know that most of the time clearence means "crap". Just like $49.99 is not $50.00.
radicalron
Jul 26, 2012 12:47 PM CDT
All they have to do is say they'll match or beat Wal-Mart prices!