JCPenney Bringing Back High-Low Pricing, Report Says
After a failed experiment with everyday low pricing under new CEO Ron Johnson, Reuters reported Wednesday that JCPenney was bringing back high-low pricing for its private label products.
The report said that JCPenney began changing price tags on merchandise earlier in March and should be done with the process in the next few weeks. It said that private label sales accounted for more than half of JCPenney’s revenue.
JCPenney reported $12.9 billion in sales in 2012, meaning its private label sales would total close to $6.5 billion. That would put the retailer seventh on the PLB Top 35, just behind Aldi and ahead of Target.
“While our prices continue to represent a tremendous value every day, we now understand that customers are motivated by promotions and prefer to receive discounts through sales and coupons applied at the register,” JCPenney spokeswoman Daphne Avila told Reuters in an emailed statement.