ORLANDO, Fla. – In a remarkable about-face, J.C. Penney is reintroducing promotions and sales after it suffered a dismal first quarter. In January, the retailer had announced a break from typical mid-level department store chains by ending daily discounts and other "artificial" sales in favor of an "everyday low price" model. Industry observers then compared the approach to Walmart-style pricing.
Such a departure from traditional sales and markdowns was seen as risky by industry analysts. The company, however, insisted its new approach would create price stability that consumers would see as both competitive and trustworthy.
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If the switch in business models can be viewed as an experiment, it seemingly failed less than 6 months after it was hatched. Late today the Wall Street Journal reported that J.C. Penney will schedule additional "Best Price Friday" sales to it calendar.
According to a retail analyst at Deutsch Bank, the company will hold five extra strategically-timed sale events including a post-Thanksgiving Black Friday sale and others likely timed during the back-to-school and Christmas seasons. A new "Best Price Friday" sale was held for Memorial Day weekend.
For the quarter ended April 28, Penney reported a loss of $163 million compared with a year-earlier profit of $64 million. Total sales declined 20 percent to $3.15 billion.