JC Penney said Thursday it plans to simplify its pricing strategy that it said has confused customers, ending month-long sales of certain items and cutting some everyday prices.
Now the retailer has just two price levels: everyday and clearance.
JC Penney has been trying to overhaul its pricing under new company CEO Ron Johnson. The idea is to move customers away from the coupons and promotions that shoppers have come to expect.
Shares of JC Penney spiked Wednesday after a tweet from Nina Garcia, a fashion director at Marie Claire, who said she was at the company's headquarters and receiving a tour of the company’s retail prototype.
The tweet read:
I’m @jcpenney’s HQ. Thank you Ron Johson for the walk through of JCP’s prototype. Get ready to shop! Its going to be a game changer!”
Jan Kniffen, founder and CEO of J.Rogers Kniffen Worldwide, appeared on CNBC Thursday to discuss the new JCPenney pricing strategy, which the company has put in place just six months after wiping out all sales promotions at their stores.
Reuters contributed to this report.