28.08.2019
 Value Chain Essay

T. C. Penney gets rid of a huge selection of sales

Penney's new CEO unveils new pricing technique to investors, credit from Wal-Mart's playbook Simply by Anne d'Innocenzio, AP Full Writer | Associated Press – Get married to, Jan 25, 2012 6th: 00 PM EST

NEW YORK (AP) -- J. C. Penney can be permanently tagging down most of its merchandise by in least 45 percent and so shoppers not anymore have to wait for sales to get deals. Penney stated Wednesday that it is getting rid of the hundreds of product sales it offers annually in favour of an easier approach to prices. Starting about Feb. 1, the retailer is moving out an " Every Day" prices strategy with much fewer sales throughout every season. The plan, the first major move by Apple professional Ron Johnson since he became Penney's CEO in November, differs from Wal-Mart's iconic day-to-day low pricing. Unlike Wal-Mart, Penney's objective isn't to undercut rivals, but rather to supply customers more predictable prices. " Prices is actually a easy and straightforward point, " Johnson told the Associated Press during a job interview ahead of the announcement at the business Plano, Tex. headquarters. " Customers will not pay actually a penny more than the true worth of the product. " Penney's plan comes as stores are struggling to wean People in america off of the profit-busting bargains that they have come to expect in the weakened economy. The move can be risky, though, because shoppers who also love to bargain-hunt may be deterred by the lack of sales. " The big query on investors' minds will be: 'How consumers will respond to a single price versus a perceived discount under the outdated strategy? '" says Citi Investment Exploration analyst Deborah L. Weinswig. Here's how Penney's prices strategy will work: — Sales prices become everyday prices. The company will use sales data from a year ago to slash prices about all products at least 40 percent or below the previous year's prices. So , a woman's St . John's Bay blouse regularly priced at $14. 99 could have the " Every single Day"...