I’ve been hearing a lot of news about JCPenney’s new pricing structure. Combine that with the feeling of “I have to get out of this house for awhile!” and Saturday afternoon found me and my four-year-old checking out JCPenney and their new “fair and square” pricing.
The new program essentially does away with what you’re used to as far as JCPenney sales: no more weekend-only discounts of 50% off, so frequent that you have trained yourself to never buy anything at full-price at JCP because you know it will be 40-60% off if you just wait a week or two.
They claim to have cut prices by at least 40% (more on that below), and will now have everyday prices, month-long values, and “best prices”. Here’s what I discovered upon checking out the new pricing structure in the store:
First, a brief explanation of the three new types of prices and how you can identify them:
JCP "Everyday Price" Tag Example
Everyday Prices
This is the shelf/no discount/full price; the price that is supposed to be at least 40% less than what it was previously. You can identify it by the color – it’s red if it’s an everyday price.
JCP Month-Long Value Sign Example
Month-Long Values
Month-long values are the equivalent of the new sale price. The item is marked down and that price will last a month – the calendar month, in my understanding. These tags and signs are purple-ish. (I just realized that this system is totally not cool if you’re color-blind.)
Best Price
This is the new clearance – anything marked as “best price” is supposed to be as low as it’s going to go. Best Price is indicated with a dark blue tag and sign.
:: Observations About The New System ::
Overall, I think the new system is easy to understand and will probably be more convenient to use. It may take you a few minutes of browsing the store to get familiar with what tags mean what, but it was pretty easy for me after just a few minutes of looking around. There are just three tags and three meanings, so it’s simple.
✓ Everyday prices really are significantly lower – on most things
JCP claims to have slashed their regular prices on everything in the store by 40% or more. From what I observed, that did seem to be true, though I haven’t been into JCP since Christmas and none of the items I remember the prices on from two months ago were still available.
Men's Stafford dress shirts were $15, about 50% off the old retail price.
It seemed like a lot of their everyday prices were very close to what I would typically pay on sale. For instance, the above men’s Stafford dress shirts were $15, a price that would have been about 50% off with their old pricing and sale schedule. To me, JCP’s “sale prices” were their regular prices , as I wouldn’t ever pay full-price for anything anyway, so it’s nice that it seems like their regular prices are very close to what I would normally have to wait for a sale for.
However, I did notice that on things like Levi’s jeans, prices were not actually 40% off of their former shelf price. I’m pretty sure that Levi’s has their own set of price controls in effect, so JCP did not lower the prices on those. I didn’t notice much of anything else that didn’t seem to have the regular price lowered, but Levi’s were definitely at or near their old manufacturer’s suggested retail prices.
✓ Month-Long Values are smaller discounts than sale prices
Ana Cardigans: Regularly $18, Month-Long Value For $14
The month-long values are nice – if you see something advertised that you want, you have all month long to get in to purchase it, instead of rearranging your weekend to hit a 12-hour sale.
Since they slashed the regular prices, I did notice that the month-long values were not a significant discount. For instance, these ana cardigans on the right were an “everyday value” price of $18, and they’re on sale for $14 for the month of February. That’s only about 25% off, which used to be a percentage discount that I wouldn’t touch at JCP because you knew the item would go on sale for 50% off.
But, since their everyday prices are lower, you have to expect that their month-long values will not be as large of a percentage discount. You’ll have to adjust your mindset for what percentage discount to expect at JCP.
✓ Is the “Best Price” really the lowest it will go?
The "best price" was a bigger discount than 70% off their old retail price
From everything I’ve read, the “Best Price” or new clearance price, as I’m thinking of it, is as low as an item is going to go. I’m not sure what exactly was going on with these tags, but I thought it was a good thing that the new “best price” was more of a discount that the pink sticker of 70% off their former regular retail price.
However, while the items with Best Prices did seem to be a pretty good deal, I guess I’m not sure if I believe that it’s really going to be the lowest it will go. If it’s really the “best price”, does that mean that on the day after Christmas, they’ll mark their holiday merchandise down to the Best Price and leave it at that price until it all sells? Or will they come back again and lower it to a new Best Price?
They had a large display of women’s coats at a Best Price of $50, and I guess I find it a little hard to believe that they will leave all of those coats at $50 until they sell enough of them.
:: Final thoughts ::
I think I like the new JCP, at least for now. I felt like their everyday prices were a little along the lines of Target. For me, it means I can pay full-price for something (especially something basic like a t-shirt or tank top) and not worry about feeling like kicking myself a few weeks later when it’s a gazillion-percentage off of the price I paid.
I’m still a little bit confused and skeptical about the Best Price setup, but we’ll see how it works in time, I guess. I’m also wondering if this means that they won’t be offering many coupons – or any coupons at all? I think they’ve lowered prices enough that it won’t really make a huge difference, but still, a $10 off $25 coupon was a great way to get me in the door to purchase a few things that I’d been holding off on, so I’m curious if they’ll continue any sort of incentivization like that.
Have you checked out JCP’s new “Fair and Square” pricing? What did you think?
I haven’t checked out the new pricing but I can say Sears tried this about ten years ago and it was a huge flop. I hope it works for JCP, I’m with you I hope they still send out the $10 off $25 coupons. I also noticed they dropped a ton of money on advertising the ad/book was nice in the Sunday paper.
I went to JCP at Chapel Hills today, and I am not impressed with the new system. I was looking at tee shirts on a shelf – there were 3 different styles on the shelves, and it wasn’t clear what price belonged to which shirt. There was an everyday price and a “sale” price. Luckily the tops I picked up were the sale ones. Also, the store looked borderline empty. I used to feel that shopping at Pennys was a step up from Target, but now, it seems more on par with Kmart. Pretty disappointed. :(
Great write up on JCP. I have avoided going there in the past due to their pricing structure, but now I am a bit curious.
I was in to JCP a few weeks ago and was initially confused at the new system, but the longer I was there the simpler it seemed. It seemed far emptier than it has been in the past, but to me that was really refreshing. I’ve always felt that it was WAY too crowded and almost impossible to use a stroller there, esp. at Chapel Hills. I do wonder about their Best Price (clearance). The day I was there, about 2 weeks ago, they had good sized rolls of premium gift wrap from Christmas for 50 cents and Little Golden books for 50 cents, which I don’t think would have been their initial clearance markdown. I still do think they are a step up from Target, simply by the brands they carry…Izod, Clarks, etc.
I agree – at first I was confused, but the longer I was there, the more it made sense! Glad it’s not just me. :)
Thanks for the new JCP prices. We normally buy Shirts and Ties there and on Sale clothes for our Grandson, who we raise. I guess I need to see what they are selling my Jeans now for to getthe real deal on it. Thanks for all of your Info’s they are a great Help.
I’m going to miss the occasional $10 off $10 coupons I would get. That’s the only time I went in there! I usually spent those coupons on some fun jewelry and walked out. Do you know if they are still doing JCP Rewards? I don’t know how I managed it but I got a $10 bonus certificate a few months ago. More free jewelry. ;) I looked at the beautiful catalog thing they sent me and didn’t see anything I even wanted to look at. They’ll have to send me a coupon to get me to go look. Or someone will have to let us know how the clearance program is going to work out.
The Rewards program is still in tact!
Unfortunately, stores can’t stay open or be a profitable business if they have customers who only shop when they have a $10.00 off $10.00 coupon and buy nothing else! I like the new pricing and I thrilled not to be in line behind someone who has a bazillion coupons or who is arguing about if their coupon is valid!! Yahoo! Love, love the new and improved JCP!!!
I don’t like it! Case in Point, those Stafford dress shirts are now $15 every day price…. BUT…. I just bought them on Sale last month in January and they where already $15 then, but I got to use a 15% off coupon making them $12.75 each. So by paying $15 and never getting a coupon, I feel ripped off, and fells like they raised their prices. I know it’s only a $2.25 savings per shirt, but I bought 3 of those shirts for my husband. That’s a $6.75 savings that I got with using a coupon!! Now that coupons are going away…. I feel I’ve lost my favoriate and best priced department store :-( I’m so sad and disappointed with them. And yes, I LOVED the $10 of $10 coupons. Also very sad to see them go. Makes me glad that Kohl’s starting doing the occasional $10 of $10 coupon. I’ll probably go there more often now since JCP has a total make over in the wrong direction I think. It’s no longer a good place for a bargin hunter and a couponer. Yes, it will be better for those people who always pay full price for things, but it gets rid of the people looking to save some money.
They didn’t do away with coupons they just released one for $10 off $50 it’s not the $10 off $10 but it makes me hopeful we may see good ones in the coming months.
Hi Carrie! I’m actually an employee with jcp, and I just happened to stumble across your article here, and I thought I would try to help clarify what the “Best Price” is as this tends to be confusing for most of the customers that I talk to when I ask them if they have any questions about the new prices.
“Best Price” is our new label for clearance merchandise. What happens on the 1st Friday of the month is that they get marked down for the first time . . . I’m not sure of exact mark down percentages, as this is our first time in the rodeo, but they are a lot better than the former first mark downs. For example, when merchandise used to get marked down for the first time, it would be at about 50% off the “original price.” Now, that markdown is probably around 60% . . . Give or take a few percentage points.
What happens on the 3rd Friday of the month is when the 1st Friday “Best Price” items get marked down even lower until they are gone! So, you can basically consider that your 80% off markdown . . . Again, give or take a few percentage points.
I hope this helps clear up some questions you may have had! Have a great weekend!
Thanks for the info. So we’ll meet all the other Springs Bargains readers there on the 3rd Fridays?! They would be a lot sweeter with a coupon. Just sayin’. ;)
Awesome – thank you so much for the detailed information, Ashley! Makes more sense now!
I’m a little late jumping into this conversation, but I totally agree with Sarah’s comment on 2/9/12. Yes, the pricing will probably be better for those used to paying full price in the past, but I don’t think those of us who are used to getting the better deals will make out with this new pricing structure.
I returned a pair of SJB jeans at the beginning of the start of “fair and square” pricing. I bought them a few weeks earlier on sale with an additional coupon. They ended up being $17ish. After I returned them, I saw them in the store for $24ish. That’s a big difference. I loved shopping there before, but haven’t been at all now because prices are higher for what I had been paying in the past with discounts and coupons.
i think this is the way they attract costumers, by making them curious about there new advertisements. that way people will be curious about there deal. it is really pretty smart thing to do specially they have a lot of competitors by reading this comments. it makes me wonder. how long is this gonna last?
I have shopped JCP all of my life and will continue to do so. The company will be 110 years old this year. How many companies can boast that? As far as the coupons go, that is all a game. 40% off one day and 50% off the next, and $10 off on an item that the price is jacked up on. Come on!! It is time for other companies to stop playing games. Just lower the price down to the every day price level instead of jacking it up and down every day. And I’m sure they won’t miss the customer who comes in and wants $10 off of a $25 item. That’s just giving it away! No store can survive doing that. I am surprised they were so giving. And is it appreciated? Hell no.
I shopped JCP mostly online, I really miss the Wednesday Deals! The prices online are not even close to the deals I used to get, including shopping on the “1st and 3rd Fridays of the month” to get special deals.
JCP merchandise is OK; but I am so used to their sales for the past 25 years that I just can’t get with their new price structure. It’s true that I have not shopped in the store since the new pricing; but I no longer get the red/black catalogs and coupons that I was inundated with before, so I am not motivated.
The 3/4 size new catalogs are slick, upscale and very nice, reminiscent of Macy’s, Dillards, etc. BUT there was a reason I shopped at JCP instead of the other stores, the reason that set them apart, PRICE! and in this economy I am looking for an alternative. I am not cheap, but why pay $30 for a sweater that will eventually be $11.98? (at least would have at the old JCP)
I was told that they weren’t even doing coupons anymore at all. I went to the photography studio today and they said the next time I came in not to bring coupons because they won’t be using them anymore. I do not like this new system at all. It is a scheme for JCP to save money because of the sales and people bringing in $10 off a $10 purchase. They are clearly losing money somewhere and are trying to make up for it by saying it is “fair and square” but really they are ripping consumers off. Let’s ask them how large of a profit margin they make off clothes made for pennies in China. Sell it to us “fair and square” and sell it to us wholesale.
Wow really the pricing is a “scheme” so that people can no longer just get stuff for free! Shocking! I mean if everybody just “shopped” for free stuff then surely they could stay in business. Surely they could employ thousands of people and provide those employees with health insurance and a way to feed their families. And having to pay actual money for a service or a product is not ripping people off.
Don’t like the new system — don’t feel as though I’m really getting the best buy ….I feel that I got better deals before. Please consider changing back!!
Althouh I like the new pricing I feel jipped on some sheers I bought. I did buy them in November 2011 for $31.99 a panel and now they are $20 a panel, which is a huge price drop. Don’t know if I should say anything or just suck it up. I doubt anything can be done at this point anyway, but I’d be ok if I overpaid by a few dollars, but $12 a panel is hard to swallow. And I bought 6 panels.
Well, if you went back to buy them again while they were on sale…they most likely won’t have the size you are looking for.
It’s worth it to check out your local jcp. It shouldn’t be a problem with the new happy returns policy!
http://money.msn.com/top-stocks/post.aspx?post=011d80e0-eef8-4c3a-b1f0-5bfa7b07d411 Interesting article about JCP stock and new pricing not working so well.
I read that same thing! Interesting – that’s what some of you said would happen. :) I’m wondering what they’re going to do now!
I don’t like it at all. My friends and I get different books. So, the only way to see EVERY price is to either go to JCP or shop online. That is just random. I tried to find a pair of Sketchers and they were one of the monthly sales… but, only 4 sizes left and now today only one size. And there was no lowering price change on the 3rd Friday of the month. Same price ALL month. Same inventory all month. What… are they going to be like black Fridays and only have 10 items that they are advertising available? I need those shoes, I buy them about every 6 months. Now I have been looking the entire month of May and they do not have my size. Guess I will have to look for them somewhere else. Loved just going online and ordering them…now I have to go shop elsewhere to find them.
This “trend” of letting go the older and dependable employees sucks. It seems to be happening everywhere. What about the employees that have been faithful to JCP? They let them go because they have been there long enough to be earning a decent pay. They can hire new employees for much less pay (minimum wage). What happened to the old school way of taking care of your employees that have been faithful to your company? The younger baby boomers are close to retierment, so these companies need to let them go so they can hire minimum wage employees and save lots of money. In the meantime…. we the consumer will also pay for this “trend”
JCP was my go to store for work & play.
Every other weekend I was there with my coupon in hand (at times) buying sheets, pillows or some type of outfit however I think since Jan I have only shopped there 4x if that and was far from impressed. I think if they brought back the coupon (but added a disclaimer stating that it cannot be used on the 1st & 3rd friday of each month or does not apply to “Best Price” items perhaps sales would perk up (at least that would get me back in the door).
I went to JCPenny today because I’ve been told about the 1st and 3rd Friday sales. All I can say is I was very disappointed!!! The deals weren’t very good. Their “best price” needs to be a lot lower to get me to buy their clothes. Shirts were about $5 and up (and most were $7, $9, or more) and pants were about $10 and up. Dresses were around $20 and up. Does this sound like the “best price” to you? I was told the $2 racks they had at one time are all gone and this is all that is left.
Thank you for the update on today’s ‘Best Price’ day. I was hoping to make it over there today, but it sounds like I can skip this week. I have been going to about every other “Best Price” Friday and have been VERY blessed with finding children’s clothes in the $2-$3 range. However, I think it has had more to do with end of season clearancing than their new strategy. They got rid of 1 brand of coat about March and clearanced another in April for the $2-$4 range.
Not sure when the summer stuff goes on clearance, but I would start watching around mid summer (hopefully someone will catch it and share on Springs Bargains!).