They seem to think that people are rational when it comes to pricing. They fail to realize that people like feeling as though they are getting a deal. Even if they spend more they are happy because they feel they "saved". Double the price and mark it down by 49% and people will be thrilled that they "saved" 49%. Keep the price where it is and they will feel like it is too expensive. There is a reason our country is in shambles, the average American is not all that good with math and more often than not can be easily fooled or manipulated into buying if they are getting a deal. Housing Market anyone? Stock market in the late 90's and 2000's? All played on people's emotions. Fair and Square is nice, but will never be understood by the customer.
You're wrong. People understand their new pricing completely. They don't want stuff at 40 percent off all the time. The want stuff at 60,70 and 80 percent off. They love coupons. The love cash back. They love big discounts. They love door busters. This new pricing strategy is insane and doomed to fail. New management expects their customers are fools and wants the shoppers to pay more instead of waiting for large discounts. I can't wait to hear their excuses the next several QTRs. I expect earnings will be terrible.
No more door busters??? They might as well not even open on Black Friday.