Did you see them in today's paper? Ron said they are learning that the customer still doesn't understand the new pricing, so this new ad presentation is suppose to help. Well... I think I have a pretty good handle on what the new 3 tier pricing strategy is, and when I saw both pages, it took me a while to figure it out. -when they show "May" price and "everyday" price, why not just use the word SALE price; much easier to understand -then we have "best" price, compared to "everyday"; again, call it what the customer understands - CLEARANCE -instead of "everyday", the customer better relates to REGULAR or ORIGINAL JCP may like these new words, but they still are not conveying to the customer what these prices mean. JCP needs to put themselves in the customers shoes, not a retail exec's. They keep talking about retraining, and with this new terminology, it is requiring the customers to have some degree in shopping now. Shopping should be a simple thing from the consumers point of view, and when you are complicating things, you lose them. Also, - I thought the blue sticker on the merchandise meant clearance/best price. So, why put the monthly sales in blue? Still confusing us more. Maybe I don't understand the pricing as well as I thought. Which means, millions of customers are in the same boat as me - steering away, to another store.
Ads in newspapers are there to attract supposably intelligent readers, but newspaper readership is DOWN! Ane to make matters worse for retailers a VERY LARGE percentage does not read newspapers...and a large percentage on new immigrants CAN'T READ AT ALL!
And the public sees in ads what they want to see. If it doesn't scream *S*A*L*E* they think it isn't.
A lot of marketing tactics have come into play recently. In grocery stores where prices have risen, shelf signs often refer to "Price per ounce" rather than price per pound. Starbucks Via instant coffee packs are priced at "$5.75 per ounce." God knows how customers would react to "$92.00 per pound" Look at the pricing of spices as well, many now are over $100 per pound but are priced by the ounce.
But, back to Penneys. The customer base now is overwhelmingly minority even in affluent counties such as Morris, Monmouth, and Somerset in New Jersey or in Arlington, Fairfax, or Loudoun Virginia. Many can barely speak English no less interpret signage! They have been taught to look for a big price sign that SCREAMS *S*A*L*E* or "Markdown with two prices. They want to see "HOW MUCH CUSTA DIS?"
Serioulsy stand near a register line in a JCP and note the foreign customer base, almost totally unaware of American retail practices ...other than " YOU GIVE ME GOUOOD PRYCE?"
"SLIGHT", maybe, in that it contained more info on how to better understand their pricing. But customers do not read and study ads. They just look at the item featured and the prices, and few will read the fine print, no matter how big it is. I have been in line at stores many times listening to customers wanting a sale price for something that was in an old ad or upcoming ad - they don't even read that info, so how can JCP expect them to read an explanation on pricing. If its confusing, or requires deciphering, they will not want to be bothered.