The biggest retail news from last week in my opinion was that J.C. Penney said that it would change the everyday low pricing model it instituted about six months ago back to something closer resembling its original model.
Yes, that's right, the midpriced department store chain began using a three-tier pricing approach that called for lower daily prices, month-long sales and periodic discounts on merchandise throughout the year. But starting Aug. 1, Penney will eliminate one of the monthly sales and bring back the word "clearance." Penney also said it plans to tweak its advertising to better communicate the pricing plan to consumers.
The move comes at a time when shoppers have voiced confusion over Penney's pricing strategy. What's more, the retailer posted a larger-than-expected quarterly loss and a 20 percent drop in revenue on poor reception from shoppers for its pricing strategy in May.
So, what do you think about Penney's move? And how do you handle pricing? Do you think sales are the way to go or are you a fan of the everyday low pricing model? We're trying to get to the bottom of this issue via our new "Question of the Week" discussion over on on Retail Online Integration's Facebook page. We would love to hear from you and get a dialog going on this important retail subject.