Seeking Alpha

The about-face on price cuts at J.C. Penney (JCP) won't include coupons, but will see shoppers...

The about-face on price cuts at J.C. Penney (JCP) won't include coupons, but will see shoppers see close to a third of merchandise set at prices 20% to 29% lower than the previous monthlong "value" prices that didn't quite catch on with regulars. The company will also use clearance sales again to make room for new inventory.
From other sites
Comments (8)
  • bakmanone
    , contributor
    Comments (39) | Send Message
     
    This is a move in the right direction but the real problem is there is no traffic in the stores. No traffic means no sales. The loss of sales in furniture and window coverings has been thru the roof. Two departments that provided big sales to the company have been walked away from and only clothes are important. Window coverings had a 50% market share while furniture with $650 million was in the top 10 retailers in the country.
    30 Jul 2012, 08:11 AM Reply Like
  • sweetpea2751
    , contributor
    Comments (5) | Send Message
     
    Not enough. A clearance sale is merchandise no one wants so they mark it down to try and sell it. When you shop there you don't feel like your getting a good deal because there are no "regular" prices marked on the merchandise. You used to be able to see the savings you were getting now I feel like I'm paying full price. It's depressing going into a JCP, one associate per quad, even the furniture store had only one associate. It feels like a ghost town walking through the store. So sad.
    30 Jul 2012, 08:24 AM Reply Like
  • sweetpea2751
    , contributor
    Comments (5) | Send Message
     
    It's not enough. A clearance sale is merchandise they couldn't sell so they keep marking it down until it does sell. With no "original" prices on the merchandise you feel like you are paying full price. The only reason I still shop there is because I have a associate discount. It is so sad to walk in JCP and see no customers, one associate working a quad and even only one associate in the furniture store. Bring back MY Penneys.
    30 Jul 2012, 08:52 AM Reply Like
  • nancyooo
    , contributor
    Comment (1) | Send Message
     
    maybe your store isn't marking the merchandise correctly. we used to cover the red stickers with the clearance stickers but for the past several months you can see both prices.
    30 Jul 2012, 11:27 AM Reply Like
  • mikebare
    , contributor
    Comment (1) | Send Message
     
    Sweetpea is talking about regular prices, not clearance.
    31 Jul 2012, 01:20 AM Reply Like
  • retailgirl
    , contributor
    Comments (123) | Send Message
     
    As an employee I've never ever seen such incompetence.

     

    People are literally yanking stuff off their windows, beds, and cleaning their closets and returning merchandise used for God only knows how long. Window coverings covered with cat hair, clothes obviously that are out of date, etc. Now, in my opinion, JCP's return policy was always way to lenient and has always been abused by the customer but nothing like I see today. There is a nasty recession and people are desperate and JCP is the new Welfare Office for sure.

     

    AND since we have new managers and many new employees who did not work for JCP before all the new practices...they don't understand our old pricing system and literally are handing out cash...yes cash....at the old retail price (we always discounted the retail price by at least 40% and usually 50%). So an $80 item was $39.99 under the old system. Today, if you bring in that $80 item the new managers give you $80.....not the $39.99 you paid for it. AND corporate has ordered us to give out cash now. Yippee. That is so brilliant I don't even know how to describe it. In our department we have days where we have returns than sales. Who decides these things and what is that person trying to prove? That no one running this place has an IQ over 7? I'm not making this stuff up....

     

    My protests have been met with outright hostility by new managers (they fired the old ones and cleaned out anyone with an ounce of sense) who say...."it's not my money so I don't care.....". Needless to say word of mouth travels and we now have customers daily bringing back used merchandise for full price. I give up. A group of older employees are trying so hard to make this company a success and it is of no use to even try anymore. New MOD's (Manager On Duty) over ride our wishes and are giving away the store to avoid confrontation or a disgruntled customer calling corporate offices. I mean, these managers are terrified of a customer calling corporate. So....they're giving away the store out of frustration and anger. They've watched as the old managers were fired and they don't want to be next so they give out cash. No one from the corporate offices will EVER back them up anyway so how can you blame them? Stick their neck out for the company only to be shot down by someone from Plano. No thanks.

     

    Bankrupt bound. This Johnson guy and his friends are dooming us.
    30 Jul 2012, 09:21 AM Reply Like
  • THR6
    , contributor
    Comments (19) | Send Message
     
    no customers...that should alarm corp executives. Further discounts (eroding margins) and customer service going backwards when it desperately needed a huge change that showed clearly they value the customer. no customers! Also a controversial marketing plan that has the core customer very dissapointed.

     

    The focus i read is on building more functional stores...better merchandise in a shop atmosphere. Excellent...needed to happen. But all the beauty in the world is no substitute for making a customer feel that you care for them. A fundemantal you missed and Im amazed you missed this.
    30 Jul 2012, 09:24 AM Reply Like
  • jleon2
    , contributor
    Comments (2) | Send Message
     
    All the above comments are true and on the mark. I also know after having just recently "voluntarily" retired! That was what they called it to make way for total incompatiency in youth
    30 Jul 2012, 11:26 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector