{"id":8550,"date":"2013-04-15T09:00:48","date_gmt":"2013-04-15T13:00:48","guid":{"rendered":"http:\/\/www.Centives.net\/S\/?p=8550"},"modified":"2013-04-15T07:29:07","modified_gmt":"2013-04-15T11:29:07","slug":"why-j-c-penney-failed","status":"publish","type":"post","link":"https:\/\/www.Centives.net\/S\/2013\/why-j-c-penney-failed\/","title":{"rendered":"Why J.C. Penney Failed"},"content":{"rendered":"<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" alt=\"\" src=\"http:\/\/www.Centives.net\/S\/wp-content\/uploads\/2013\/04\/041513_1123_WhyJCPenney1.jpg\" width=\"640\" height=\"400\" \/><\/p>\n<p>Clothing retailers appear to have perpetual sales that do nothing but mislead customers about the value of the deals they&#8217;re getting. As we&#8217;ve <a href=\"http:\/\/www.centives.net\/S\/2012\/the-failures-of-honest-pricing\/\">previously covered<\/a> Ron Johnson wanted to try to change that and implement a system of fair pricing. The initiative has been an abject failure and has seriously damaged J.C. Penney&#8217;s sales. What happened?<\/p>\n<ul>\n<li>Coupons and false &#8216;sales&#8217; are a drain on retailers. It makes supply difficult to project, and leads to uncertain profit margins.<\/li>\n<li>It&#8217;s not that great for customers either. They don&#8217;t really get a discount when they go to stores \u2013 instead the retailers inflate the original price and then pretend to mark it down to make it seem like a good deal.<\/li>\n<li>In theory then getting rid of coupons and facetious sales is a good deal for both parties.<\/li>\n<li>Yet human beings seem hardwired to look out for deals \u2013 even if they&#8217;re fake. The thrill of the hunt is half the fun of shopping.<\/li>\n<li>Part of the problem is that J.C. Penney couldn&#8217;t promise the low<em>est <\/em>prices the way that chains like Walmart do. All it was claiming was &#8216;low&#8217; prices but what was &#8216;low&#8217; was being defined by J.C. Penney and consumers had no reason to trust it.<\/li>\n<li>Thus J.C. Penney&#8217;s initiative failed and its CEO Ron Johnson was replaced.<\/li>\n<\/ul>\n<p>Read more about the struggles that other companies have had with honest pricing, the merits and drawbacks of honest pricing, areas where it may work, and more over <a href=\"http:\/\/www.nytimes.com\/2013\/04\/14\/business\/for-penney-a-tough-lesson-in-shopper-psychology.html?pagewanted=2&amp;_r=1&amp;hpw&amp;pagewanted=all\">here<\/a>.<\/p>\n<p>Source: <a href=\"http:\/\/www.nytimes.com\/2013\/04\/14\/business\/for-penney-a-tough-lesson-in-shopper-psychology.html?pagewanted=2&amp;_r=1&amp;hpw&amp;pagewanted=all\">The New York Times<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Clothing retailers appear to have perpetual sales that do nothing but mislead customers about the value of the deals they&#8217;re getting. As we&#8217;ve previously covered Ron Johnson wanted to try to change that and implement a system of fair pricing. The initiative has been an abject failure and has seriously damaged J.C. Penney&#8217;s sales. What [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8550","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-bulletin"],"jetpack_featured_media_url":"https:\/\/www.Centives.net\/S\/wp-content\/uploads\/2013\/04\/041513_1123_WhyJCPenney1.jpg","_links":{"self":[{"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/8550","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/comments?post=8550"}],"version-history":[{"count":3,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/8550\/revisions"}],"predecessor-version":[{"id":8556,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/posts\/8550\/revisions\/8556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media\/8549"}],"wp:attachment":[{"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/media?parent=8550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/categories?post=8550"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.Centives.net\/S\/wp-json\/wp\/v2\/tags?post=8550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}