I have been an enthusiastic and vocal supporter of Penney’s “no sale” strategy for almost a year now, sticking with the brand even as its marketing fell on deaf ears with consumers and investors. The stock was up last month and its website was reportedly a favorite visit during the holidays, but there’s every reason to expect it will report dismal fourth quarter results (expertly obfuscated with stats on eyeballs, awareness, and whatever). I now believe the company is doomed. We should stop holding our collective breath waiting for success, and start looking for lessons to learn from its failure.
I think no sale strategy is not a very good idea to increase their profit because consumers are usually waiting for sale season to get something that they want. They want more sales and they are willing to buy the products with lower price. They want to feel that they earned profit after they buy products. Let’s say JCPenny and other company are selling same product but the other company is on sale but JCPenny is not, who wants to buy the same product with higher price? What I think is JCPenny need to change their tactic if they want to survive in this competitive market.
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References
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http://smartcanucks.ca/jc-penney-now-9dollar-shipping-to-canada/
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