Is JC Penney faking its prices?
After taking a stand against phony pricing last year, the embattled retailer is reportedly asking suppliers to concoct 'fake' prices to make discounts look better.
Just a year ago, J.C. Penney (JCP) had a bold marketing plan: vanquish "fake" prices and offer simplified pricing that would do without markdowns and sales.
But a new report says the retailer is still faking -- and this time around, it's allegedly playing the same old mind games that it disavowed.
Penney is reportedly asking some manufacturers to make up "phony suggested retail markups" for their clothing, reports the New York Post.
Then, to give shoppers the perception of hitting upon a bargain, Penney's stores reportedly tag the clothes and accessories with the chain's own lower prices, the Post reports. In one hypothetical example of how the strategy works, a table with sweaters might have a sign reading $30, but the price tags on the clothing could read $22.
One thing's for sure: J.C. Penney is under a lot of pressure.
Doubts are swirling about the company's turnaround plan, with UBS analyst Michael Binett earlier this month saying he expected same-store fourth-quarter sales to drop 28%. The company is expected to report fourth-quarter results on Feb. 27.
Penney is asking manufacturers put in writing the suggested retail prices, to ensure it can back up pricing claims, according to the Post. Penney officials didn't respond to the newspaper's requests for comment.
CEO Ron Johnson, a former Apple (AAPL) executive, has bet the retailer's turnaround on a "fair and square" pricing strategy. The company debuted splashy ads featuring Ellen DeGeneres making fun of marketing gimmicks.
So far, it appears shoppers aren't buying it.
Revenue has declined by more than 20% for three straight quarters, while the stock has slumped 47% during the past year.
More in moneyNOW
I occasionally stop at J C Penny but seldom purchase anything there. In the past, I liked going to J C Penny for both quality and price but they do not seem to be the same company they used to be. I always felt that J C Penny stores were clean and bright with a half decent selection available.
If this story is true, then the end of J C Penny is near. I see this practice all the time on Amazon and E-Bay and I think that stinks. I want to not only feel that I am getting my money's worth but I have been dealt with fairly.
Im not sure about this article. but I am sure is jc penny has good prices on most of there clothes.. in most cases cheaper than walmart..and its better quality too...What i dont understand is why more people dont shop there..when you can get a blouse for 8 bucks....you cant beat that at walmart...so maybe some ofthe prices are misleading....so what...
Department stores for the most part offer the consumer little real value when the BORG have taken over their business model.
every thing i buy from jc penney is fake, including the table that sits in my livingroom no doubght fake. i suspected that the price was fake as i wrote the check. yup it was fake alright,
So I guess there is a price to pay for treating your customers as if they were morons. People recognize a simple matrix of price and quality and JCP scored poorly.
Telling us we are getting a good deal is not the same as delivering one.
J.C.Who............OH, that place..........Used to walk through there on the way to go shopping.
But then again, I don't even go to the mall any more.
JCP needs new top management. They remind me of K-Mart. When K-Mart was on the ropes they decided to get into political causes. Well that ticked off half their customers and put them into bankruptcy.
Duh! JCP is doing the same thing by alienating tens of thousands of their customers by jumping into the political pit. Serves them right. Anytime a business decides that politics comes before business and customers they are heading down the bankruptcy path.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
A basic income policy can actually ensure a decent standard of living for everyone.
- People left $500,000 in coins at airports last year
- How your driving can affect your credit
- Obamacare projected to cost hundreds of billions less
- November jobs report: Winners and losers
- Student loan debt climbs for 5th year in a row
- Wall Street finally notices Bitcoin
- Part-time workers hurt by on-call system
- 5 myths about late payments and your FICO scores
- Auto loan interest rates hit record low
[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
More Market News
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.