So when Penney's newly appointed CEO, Ron Johnson, declared in mid-January that most of the original prices in his store have long been "fake" and inflated, the only surprising thing was that he had the guts to admit it. More surprising: Johnson said he was going to make changes.
Instead of facing infinite discounts and promotions--there were 590 different "sales" at Penney alone in 2011--the department store's shoppers will now see just three price categories. One will represent discounted seasonal items that change monthly. Another is clearance merchandise marked down on the first and third Fridays of each month. But the majority of goods will be offered every day at 40% or 50% less than the prices Penney used to charge. In retail parlance that's called EDLP, as in "everyday low price."
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Photo Credit of Penney’s new logo to go with its “fair and square” pricing model
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