March 28 J.C. Penney Co Inc said its
brand new pricing strategy could hurt sales for some time and
there was no guarantee its store and merchandise revamp
announced in January would work.
J.C. Penney did away last month with its longtime strategy
of marking prices up only to slash them and instead now keeps
prices low from the start, with a twice monthly sales to clear
out out-of-season merchandise. It is also planning to change
store layout and merchandise assortment.
Analysts said in January, when the plan was unveiled, that
the move could confuse long-term customers conditioned to look
In an annual report filed on Wednesday, J.C. Penney said the
new pricing strategy "could result in a prolonged decline in
sales" and that there is "no assurance" its new strategies will
lead to better results.
Sales at J.C. Penney stores open at least a year rose 0.2
percent last fiscal year, compared with a 2.5 percent increase a
year earlier. They rose 5.3 percent at Macy's Inc.
In February, CEO Ron Johnson said sales were down for the
month up to that point.