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JCPenney Pinching Price Controversy

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  • Description

    FBN's Liz MacDonald on JCPenney's allegedly phony retail markups.

  • Duration 2:16
  • Date

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This transcript is automatically generated

Thanks a lot.

So a new controversy -- JC Penney about a reported plan to tops even more spotlights -- -- quote everyday low prices.

But JC Penney -- fastballs by you with more here's was McDonnell indymac bottom line so what's the high.

I'm so -- going on is is that there is an internal plan according to near post -- JC Penney.

To basically have their retailers show their suggested retail price.

But then have the price tag be lower than that price in other words that suggests to -- -- -- -- repair pants could be fifty bucks.

On the sign Indians in the store but then the price -- -- say you know what.

Thirty bucks is what you pay so in -- in big JC -- we've been pressing them to come back to us with a statement about this report.

It seems to me that they would they have said to us that we will get back to we want to respond to this news report.

So there's an internal debate over how to respond to -- -- this is the company a year ago and of the day had this reinvention of its retail strategy you know we're not gonna have coupons were not gonna have discounts are gonna have everyday low pricing.

But you know what TJ Maxx is undercutting them right now so they're there right there with Sears in every -- purgatory guys.

And so now we've got -- the stock has been under pressure to fourth worst performing.

In the S&P 500 down nearly 60% off its 52 week high and we're expecting earnings coming out of and next month -- a loss of a nickel a share vs 74%.

EPS profit last year they're still in a world of pain at JC Penney.

The revenues are expected to drop to about 23%.

Quarter to quarter when they report next month.

So in other thing this did the strategy worked at Ron Johnson former executive apple is this a strategy working it seems like it's not.

Three straight quarters of plummeting same store sales down 30%.

Awesome -- the thing is Americans love sales.

Period they look to see stills right 'cause.

You mentioned date and TJ Max sorry and they are he did at pricing and maybe they they did for a long period of time so you see did discounted prices.

On higher and fashion luxury items that might come -- -- TJ Max into -- Jimmy -- I'm saying as a for JC Penney isn't Clinton just way too late on that track.

Yeah they may be behind the people right guys so you know JC -- may have to reinvent itself once again indicated -- sales up.

All right Elizabeth MacDonald thanks so much.

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