Although the campaign to switch to everyday low pricing, launched in February, tried its best, JCP is choosing to put sale back into their vocabulary. Shoppers had a hard time understanding the new pricing strategy and didn’t quickly adopt to the change in shopping patterns.
Although the 3-tiered, red, white, and blue pricing categories appeared patriotic they did not prove profitable. According to Reuters, purchases in the first three months of the new pricing campaign fell 18.9%. That percentage was large enough to cause some alarm. Results show that customers just don’t understand the every month low pricing strategy that J.C.Penney was calling a ‘month-long value.’
The company hopes that switching back to calling their values sales will help increase purchases and maybe even revenue.
Rapt 