Dont know how many of you follow retail, but JC Penney just pulled the plug on one of the biggest experiments in pricing historyacknowledging it to be a colossal failure. In short, Ron Johnson, the architect of a move from constant couponing to simple fair pricing is out. And expect coupons to be back in.
I was skeptical when he was hired and announced his plans less than 2 years ago on two grounds: 1) Walmart kind of owns the every day low price model (plus its not clear that everyday fair pricing has an authentic ring to it anyway) and 2) more often than not, I find people like to feel theyre getting a deal. In other words, discounting sends a psychological signal that is more powerful than simple pricing.Read More