Plano, Texas -- A Tuesday report by Reuters said that embattled J.C. Penney Co. has recently revived its previously abandoned pricing strategy of raising prices on its own brands then discounting them as a way to spike sales and margins.
Citing an emailed statement by Penney spokeswoman Daphne Avila, Reuters reported that the retailer began changing price tags on merchandise earlier in March and expects to complete the process in April.
"While our prices continue to represent a tremendous value every day, we now understand that customers are motivated by promotions and prefer to receive discounts through sales and coupons applied at the register," Avila wrote in the statement.
Penney's brands include St. John's Bay, jcp, Stafford and Arizona. The lineup of private labels is said to generate more than half of Penney’s revenue.
In February, CEO Ron Johnson announced an impending pricing strategy change, but didn’t provide detail