JCP Charges a Lot More Customers Spend a Little More
Home Textiles Today Staff -- Home Textiles Today, 2/13/2012 2:00:00 AM
To buttress the argument for lowering JCPenney's pricing across the board and ditching a blizzard of promotional activities executives noted that while it has escalated its prices over the past decade, what the customer actually pays for a product once events like one-day sales, coupons and discounting are taken into effect has changed very little.
An item JCP bought at a cost of $10 in 2002 went out at retail at $28 - but actually sold on average at $15.80.
As of last year, that $10 item carried a $40 price tag, but ultimately sold at $15.95.
So while the price tag jumped 43%, the customer wound up paying only 1% more than she did in 2002.
The customer, said ceo Ron Johnson, "doesn't even start paying attention to pricing offers until they hit 40% off."
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