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J.C. Penney is revamping its pricing strategy six months after the mid-priced department store operator made a sweeping overhaul of its pricing structure, getting rid of hundreds of sales it offers in favor of a three-tier pricing approach. Now the company has decided to eliminate one of the tiers and bringing back the word "clearance," effective Aug. 1. Here's a breakdown of the structure.
TIER 1. "EVERY DAY" PRICES
PREVIOUSLY: J.C. Penney eliminated 590 sales in February to offer most items at "every day" low prices all the time — 40 percent off what items normally cost when the company had sales.
NOW: J.C. Penney is keeping "every day" low prices but it is eliminating the name. Price will simply be marked in black.
TIER 2. "MONTH LONG VALUES"
PREVIOUSLY: J.C. Penney said it would select certain items each month and offer them at "month long" values, cheaper than the "every day" price.
NOW: The company said this tier was confusing customers so it is eliminating it completely.
TIER 3: "BEST PRICE"
PREVIOUSLY: The company marked down some items to their lowest price, called "Best Price" and offered clearance sales on the first and third Friday of every month. In May, they said they would add five "Best Price Friday" sales throughout the year.
NOW: They're changing the name to "Clearance" and marking the prices in red. New items will be marked down to clearance every Friday.