J.C. Penney changes pricing and retailing structure
Today J.C. Penney, the American retailer has only two price levels, namely everyday and clearance. The new company CEO Ron Johnson is not only in charge of the new price structure but as well responsible for a new retail prototype for the company’s stores
First of all, J.C. Penney is about to change the retail prototype of its location to a brand new retail experience. But also the pricing structure is going to change with the idea to move customers away from the coupons and promotions that shoppers come to expect.
Up to now the company had a price structure that was confusing customers, meaning the month-long sales of certain items and cutting some everyday prices. The new pricing will be limited to everyday and clearance as categories.
It will be interesting to witness the new birth of J.C. Penney and see if it brings the desired results at the sales front.