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Joining the frenzy of early promotional activity from retailers, JCPenney is promising big deals and low pricing this holiday season. The department store, which a year ago reinvested $1 billion into its business, said it plans to price 70% of its gift assortment at below $20 and offer discounts up to 75% on jewelry and 60% on apparel, among other deals.
These deals are more than one-off promotions, however. They reflect a deeper shift in strategy around how the department store manages its inventory and chooses its assortment, Michelle Wlazlo, chief merchandising and supply chain officer for JCPenney, told Retail Brew via email.
“Our ‘Gotta Have It’ pricing means that every day, our customers understand the great value that can be found at JCPenney, including top items with relatively consistent pricing throughout the year, and which are still eligible for use with our coupons,” she said.
Keeping it in-house: One ingredient in JCPenney’s new strategy is a greater emphasis on private label fashion brands such as St. John’s Bay, Stafford, Arizona, and Liz Claiborne.
“These brands are developed at a lower cost because we own the entire process—from design, to materials, to manufacturing—with rigorous focus on quality, and we pass those savings on to customers with great value,” she explained.
Wlazlo noted that JCPenney’s recent self-funded reinvestment didn’t just go into improving the look and feels of its stores. It also funded upgrades to its supply chain and inventory management, including new tools that capture data to help inform decisions around allocation, fulfillment, and replenishment
“This data has been particularly useful during holiday planning to help improve efficiency, and allows us to manage pricing more carefully and consistently,” she said.
These enhancements have helped JCPenney maintain a 90% stock rate on key items.
“We are not just offering a great array of products from private to national brands—but ensuring our inventory management and supply chain optimization get the right products in the right places for our customers,” Wlazlo said.