J.C. Penney workers say sale come-ons are bogus
One former and one current employee report that goods get marked up before getting marked down with promotional prices.
According to NBC's Today show, a Penney employee in Virginia named Gena Stone was asked to mark up the garments before they went on sale, something she was uncomfortable doing, to make it appear to consumers that they were getting a bargain. Stone has since quit her job with the retailer.
"Today" also quoted current Penney employee Bob Blatchford regarding the practice of marking up goods before marking them down for sales. When asked why he would jeopardize his job by coming forward with such information, he replied: "Because I thought it was wrong and I thought the public had a right to know. . . . And I don't think Penney's will survive if they keep doing this."
Consumers may not realize this is a common tactic among retailers, because shoppers can't pass up a good "deal" -- even if it may be one only in name, according to independent retail analyst Stacey Widlitz.
"Value is in the eyes of the consumer," she said in an email to MSN Money. "And that comes in the form of ANY sale sign."
Ironically, former Penney CEO Ron Johnson had vowed to do away with "marketing gimmicks" and instituted what he called "fair and square pricing." Customers, though, found the strategy confusing, and the retailer eventually went back to having sales. Johnson, who made his mark running Apple's (AAPL) retail stores, was subsequently fired.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
ALL STORES DO THIS!! They had everything marked down to give the public the sale price all the time and they didn't like it. So now they have to go back to the way it was(no one had a problem with it back then) so they could offer the "sales" that everyone wanted and you don't like that either. So just what is a store suppose to do to satisfy ya'll. JC Penney is trying real hard to please everyone but you know the saying," you can't please everyone..." JC Penney is no different than say Kohl's or Macy's. They just didn't try something different. Come on now give them a chance to get back to normal like every other store who marks stuff up for sales.
Since this practice started with the invention of "the store", it seems that our trusty media is now simply on a witch hunt to burn JC Penney. Perhaps the writer (or their editor) of this "story" didn't stop to consider that shoppers actually know what they like and want, do comparison shopping and know what their preferred brands generally cost. In this example, Penney's often compares quite well.
The garments that we purchase are not the quality of past years. These large companies
employ people overseas to make these items and pay them disgustingly, low wages.
The markup on retail items is outrageous. No one should buy at full price because the
quality is not there. I personally wait until the sales are at least 50% because these companies
are still making the big bucks.
Echoing others, this is done by many stores. But like the article says they tried to streamline the process and I believe that there were even articles stating that customers would actually save more with JCP new option but it didn't matter. No "sales" made people think they weren't getting a good deal and it didn't work. So now they go back to the old way and sudden it isn't good either. What the hell do you people want? They tried and you didn't like it and wanted the old way back, now its back and people are complaining about that. I don't care as I don't go to JCP much but honestly what was wrong with the new plan? How was it confusing? To me when I've been in the store the current pricing and random sales model seems to be more confusing.
JCP has made some mistakes of their own doing but here I feel sorry for them. There is a fine line to walk with this strategy but some people just can't seem to be happy.
I think its time
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