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Thread: JCP Fake Price Hikes Begin

  1. #1
    Member Juan's Avatar
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    JCP Fake Price Hikes Begin

    Their OCBDs were $25 yesterday and they've raised the price to $40 today:
    http://www.jcpenney.com/dotcom/jcp%2...mComboVal=null
    So, I guess the OCBDs will be 40% off soon to arrive at the old price.

    Article about their new sales strategy:
    http://www.reuters.com/article/2013/...92Q03G20130327

    This company is so desperate that I don't think they will survive, and Johnson will be out as CEO by the end of this year.
    Last edited by Juan; April 2nd, 2013 at 04:24 PM.

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    Jeebus, that's quite a hike.

    So now, with a $10 off $25 coupon, that shirt ends up costing $35 ($10 more than the old everyday price). Of course, most of the idiot mall-shoppers will probably eat it up since they'll think they're getting a deal.

    *sigh*

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    Varsity Member JoeG's Avatar
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    At this point it is all just annoying. They should of just stuck to their guns on the low everyday pricing and offered the occasional stacked coupon to appease the deal seeker in us. It's so obviously desperate, and annoying to those that have been following their attempt at rebranding the company.

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    Super Moderator bjmcgeever's Avatar
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    Ugh. That is all.

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    To be fair to them, their old business model clearly wasn't working, and I think they're allowed to change if that's what they need to do to stay in business.

    Furthermore, the oxfords were already selling out so fast that it's not inconceivable that they were already selling below the price that would have maximized their profits anyways; I feel like if they'd priced them up to 30 we'd have complained but still bought them out. When they were at 25 dollars I could go online a week later and there would already be colors out of stock.

    I know we may not like it, but a company has to do what it has to do, and I'm not going to begrudge them the right to change their marketing strategies to stay afloat.

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    Super Moderator LesserBlackDog's Avatar
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    I feel bad for JCP's position. It took some cojones to try out their everyday low price model to begin with. Unfortunately it turns out that most shoppers prefer to be fooled into thinking they are getting a $40 shirt for $25, instead of facing the reality that they are getting a $25 shirt for $25.

    So now JCP is stuck following a strategy that has totally bombed, or hiking prices to get back to the old "tried and true" pricing strategy. Ultimately I think JCP has no option other than to return to the old pricing scheme, but it's hard to imagine that the price hike isn't going to lose them some customers along the way.
    Ben

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    Member Juan's Avatar
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    Quote Originally Posted by LesserBlackDog View Post
    So now JCP is stuck following a strategy that has totally bombed, or hiking prices to get back to the old "tried and true" pricing strategy. Ultimately I think JCP has no option other than to return to the old pricing scheme, but it's hard to imagine that the price hike isn't going to lose them some customers along the way.
    I believe revenue was down 25% in 4th Qtr 2012 as a result of the old price strategy. I'm guessing that this new price strategy will confuse customers even further and they will lose another 25%. It's a sinking ship.

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    I really hope that JCP makes it, but it doesn't look good. I think between the new pricing and the store re-designs I think they tried too much too quickly.

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    Not sure this will help. Most of those old consumers have likely moved on, and once brand loyalty is lost I'm not sure it is easy to get back, especially since those consumers had a bunch of places they could substitute JCP with (Kohl's, Dillard's, Sears etc all play the sales game). And unfortunately for JCP this will likely result in the loss of any new consumers they had gained. I have probably spent more at JCP in the last two months than any other store (for clothes purchases) because I liked what they were doing. I am now unlikely to shop there anymore as I had never shopped there before their recent change. I think they had only one chance (which was that they would gain enough new consumers like us), albeit a slim one, and they blew it. I predict that JCP won't see 2014.

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    At $25 they were still only $5 cheaper than the Uniqlo oxfords which are far higher quality. I'm not going to hang around waiting for a sale when I can pick up something better any day of the week.

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