We've all heard about JC Penny's marketing tactics over the last year as they decided to end all sales and instead go to a model where cheaper prices are available every day. I was just reading through an interesting Forbes commentary (read it here), and I must agree that JC Penny's success is likely to dwindle in the future. Yes, they did well recently, likely because they did institute sales over Black Friday that encouraged shoppers to visit the store. Had they not had a sale, it is more than likely that this last quarters earnings would have been down like all prior quarters. Consumers are used to sales, they expect sales. If companies drop these sales, consumers will be skeptical that prices could in actuality be lower. If JC Penny wants to maintain competition against it's greatest competitors, bringing back their sales model will be key to their success.
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