Have you seen any of the new JCPenney commercials this week?

The new Penney’s CEO has rolled out a new pricing strategy. JCPenney is permanently marking down all of its merchandise by at least 40%, so shoppers no longer have to wait for sales to get bargains. It is getting rid of the hundreds of sales it offers each year in favor of a simpler approach to pricing.

Here’s how Penney’s pricing strategy will work:

• Sale prices become everyday prices. The company will use sales data from last year to slash prices on all merchandise at least 40% or lower than the previous year’s prices.
• Fewer sales. They will pick items to go on sale each month for a “Month-Long Value.” Items that don’t sell will go on clearance on the 1st and 3rd Friday of every month. Those items will be tagged “Best Prices,” signaling to customers that it’s the cheapest price.
• New tags. Each time an item gets a new price, it gets a new tag. A red tag indicates an “Every Day” price, a  white tag a “Month-Long Value” and a blue tag a “Best Price.”
• Simpler  pricing. Penney will use whole figures when pricing items. In other words, you won’t see jeans with a price tag of $19.99, but rather $19 or $20.
• New advertising. New ads began airing recently  to promote the new return policy and this new pricing/sales strategy. The company also has a new spokeswoman (Ellen DeGeneres) and new logo.

I think it will be interesting to see how this plays out and if it will end up being a successful strategy for JCP. This probably means that there will be no more of those JCP coupons.

What do you think about this change?
Are you more likely to go check out JCP now?

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