Why JCPenny’s New Pricing Policy May Not Be As Great As It Seems

Why JCPenny’s New Pricing Policy May Not Be As Great As It Seems

After JCPenny announced its new pricing scheme, many financial sites portrayed the new policy as manna from heaven. If you judged by the headlines alone, you’d think that JCPenny was now selling everything for 40% less than suggested retail, no questions asked.

Photo courtesy of Mike Kalasnik, via Flickr.

As is often the case, the reality is more complex. Read on to find out what the new policy means, and what it means for you.

Let’s start with what the policy isn’t. Despite some of the reports you may have read, JCPenny is not doing away with all sales. Instead, JCPenny is lowering the prices for all of its merchandise an average of 40%. They are also doing away with most sales, not all. There will still be weekly and monthly discounts on certain items, and these will be designated by special tags. And, contrary to some articles, JCPenny is not quite emulating Wal-Mart’s “everyday low price” strategy, either. The purpose of the change is to make the shopping experience more predictable, not necessarily cheaper. The idea is that most shoppers find fluctuating sale cycles confusing and frustrating.

For savvy shoppers, this policy change may in fact be a bad thing. For one reason, that 40% discount has nothing to do with the suggested retail price, or the price offered by competitors. JCPenny’s merchandise will be 40% less than their own prices from the previous year. Those prices were made artificially high to compensate for regular discounts and clearance sales, so it stands to reason that the average shopper is going to do no better or worse than before the policy change.

The real trouble with this policy is that it appears as though there will no longer be coupon codes and flash sales. As any DealPro will tell you, one of the best ways to save is to combine discounts. Previously, it was possible to wait for an item to go on sale, to have a clearance price, or to be offered with free shipping. This was the time to combine that discount with a coupon code and get it for even less. While it’s true that this new system might benefit shoppers who have no interest in timing when they buy, it remains to be seen whether or not it will benefit those of us willing to do a little homework.

In any case, this policy change shouldn’t necessarily change the way you shop. As always, it’s best to compare prices on multiple sites before you decide to buy. Sometimes JCPenny will be the cheapest place to get something. Often, it will not. Just don’t let that “40% off” fool you.

Have your own thoughts about the new JCPenny pricing policy? Please share in the comments.

There are 6 comments for this article
  1. psutton at 7:52 pm

    Bummer, I love it when I can get something 70% off the sticker price with a sale plus coupons. There’s something about big discounts (even if the original price is inflated) that makes me happy!

  2. Susan.Yoo-Lee at 9:48 pm

    I just bought a dress for my daughter from JCPenny on clearance for $12, the original retail price was $69.99. While the dress was cheap, when I looked at their retail price, I couldn’t believe it because the quality wasn’t up to par. At Nordstroms, if I got a dress for $69 retail, it would be very good in quality and design. The dress that I got was something I could get at KMart.

  3. nicole43 at 4:41 am

    I loved JCPennys…until now! I could get a better deal….bottom line with the marked down sales in the stores combined with my discounts and coupons! I used to be able to get free merchandise when I used the spend $10 get $10 in the mail. I don’t think I will buy as much anymore…especially when I know I won’t be getting a better deal in the end. I only shop bargain unless on an emergency whim!

  4. nicole43 at 4:43 am

    PS…..Ron Johnson (JCP’s new CEO and “thinker”) should really have stuck with APPLE!! Change and inexperience don’t mesh well!

  5. tntxgal at 8:55 pm

    Mr Johnson should have done his homework. Most women love to shop. It is not a question of needing something. It is more about getting a deal and talking about it. It is a feeling of accomplishment knowing that you did not pay retail. I am blessed I do not need anything per se but if I get a dollar amount or percentage off coupon in the mail or newspaper I will go to that store and find something to buy just to use the coupon.

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