Another former fan who is not liking the new structure.
I buy most of my clothes and my daughter's clothes at thrift shops. Once in a while there was something that we don't care to buy used (like undies) or is tough to find used (nice blouses in my size) and I'd go to JCP for that. I also bought my husband's dress shirts there.
Once in a while they'd mark down the clearance dress shirts to less than $10 apiece--I'd get a coupon from my mom and one in my mailbox, and I'd usually end up with 3 or 4 shirts and pay only a few dollars out of pocket. My husband likes dress shirts even though he has a fairly active job so I don't want to pay too much for them.
It also saved me for holiday shopping this year; we got a coupon almost every week (and my mom shared hers with me) and we got rewards certificates too--I bought gifts for all my "guys" and my daughter and a few for me too and then a lovely new blouse at the end of season clearance sale. I probably spent less than $20 on all of it.
Granted the store isn't in business to give things away, but at the same time they always got a few bucks (and stuff that was so deeply clearanced would be salvage before long) and I am certain I don't represent the average shopper. Most people I saw had a pile of clothing and one coupon; they were still spending quite a bit.
I have to say that I quite enjoyed figuring and planning and shopping the sales racks--waiting until something got reduced further, still being able to use my coupon on clearance and sale items, etc. Without sales---meh, I probably won't bother.
While I understand the idea that they are putting their prices at a "set" price rather than raising prices in order to discount them, I think they are using the repeated explanations of that notion to disguise the fact that they are raising their prices overall.
Formerly, maybe shirts would be on a 60% off sale one week but pants would be only 20% off. Their hope was that people would buy shirts and pants at the same time and the sale prices would average out. But of course there are always some folks for whom it is worth it to delay the pants purchase until they go on sale a few weeks later; and get the higher discount on both.
They were counting on people's impatience, and with the economy as crappy as it is and many people in difficulty, I think that more and more people were willing to be like the second type and waiting for the better discount. So in that case, they've "won" because they've stopped that sort of customer. But maybe they've ticked off that same customer, who now decides to buy ALL their clothes somewhere else.
This is a novel, sorry, but the thought processes behind economics fascinates me. What causes people to buy, etc. Obviously, I'm not a fan of the change, and I hope I'm correct that it won't work.
I find it interesting too!
I think you're correct in that you're the type of customer they were likely trying to drive away. I also wonder specifically how the clearanced/coupon stuff works on a balance sheet vs. whatever they do with unsolld.
Like say the shirts. Say they cost JCP $3 each wholesale. Cost $.50 more a piece in labour, shipping, tagging, etc. to get on the racks. So they're in for $3.50 a shirt. Say they price them at $14.
How many do they sell at that price before?
If they sold... 1/4 of them at that price before, and then put them on 30% off (so now $9.80) - and then you came in with 2 $10 off coupons and bought three, and paid $9.40 for the three shirts, first, then they're at $3.13 a shirt so they're losing money but I dunno how that works on a balance sheet with the coupons.
If they now have them at $12 and no coupons - do they sell the same 1/4 of the stock? Do they sell 1/3? If they did would that increase make up the deficit from your deals?
What happens to unsold shirts in either case? Do they go to a wholesaler? What happens to them on the balance sheet?
Obviously my numbers are totally invented, I was just going off you said they discount them to under $10 and I made stuff up. However, you see what I mean I think - how much more would they have to sell to cover what could be happening under the old system?
How many new people who didn't like coupons do they have to lure to tip the other way? What discount do they have to put on stuff to keep people who were in the middle of the extreme coupon/clearance shoppers and non?
I personally hate the coupon thing, though there's no JCP here so it doesn't matter. But I won't shop at Kohl's (partially because their stuff is just mostly utter crap, imo, but the actual brand stuff like housewares) because they jack the prices up to ludicrous, put a "sale" sign on everything in the place all the time, and if you don't have a coupon/Kohl's card/whatever their reward dollar system is, you'll totally get ripped off, and, frankly, for many things, even if you do, you will.
I bargain and comparison shop for tons of stuff, heavily, but some things, I know what I want, I know roughly what it costs, I'd like it now and if it's what I think is a fair price and I can go in, get it, and walk out without jumping through hoops or it being a zoo, I'm fine with that, even if it costs me a bit more, you know?
Like... a pan or set of a national brand of sheets or something. The sheets might be $50 at Bloomingdale's, and they might be $44.99 if you can find them at Kohl's, and you have the coupon and the thing and wait on the line and...
I will pay the extra $5 for the ease of going into a store that's properly laid out, staffed, where someone will actually be there and find something not on the shelf, and where I don't have to wonder IF it's the lowest price it'll be or if there's a reward thing or an email thing or etc., etc., and I can easily pay and leave.
I dunno how many people are of my view and how many like the game of the coupons and stuff, which people clearly do - and how many of which kind there have to be to make it worth while. 'Tis interesting.
Kohls took them back with no problems at all. JCP or Target would never do that!
