July 26 J.C. Penney Co Inc said on
Thursday it will end month-long sales of certain items and cut
some everyday prices to simplify pricing that it says has
This leaves the company with just two price levels -
everyday and clearance.
J.C. Penney has been trying to overhaul its pricing under
new Chief Executive Ron Johnson to wean customers off the steady
stream of coupons and promotions that shoppers had come to
But changing the pricing while trying to change its
merchandise and store formats contributed to a
worse-than-expected 18.9 percent drop in sales at stores open at
least a year during the first quarter.
Johnson said at the time that the new pricing had not been
properly explained to consumers and Michael Francis, the
executive brought in from Target Corp to oversee
marketing and merchandising last year, left the company shortly
The company will also start promoting its program to match
lower prices at competitors on identical items, spokeswoman Kate
Coultas would not say how much the company will be cutting
the everyday prices on some items. The Wall Street Journal,
which first reported the elimination of the month-long deals on
Thursday, said prices on some merchandise would be cut by 20 to
J.C. Penney shares rose 17 cents to $22.17 on Thursday on
the New York Stock Exchange.