Price Trickery! Is JCPenney Hiking Prices To Offer Deeper Discounts?
JCPenney is strapped. The store recently announced a round of layoffs and store closings. But it seems it is so strapped that JCPenney may actually be raising prices just so it can offer deeper discounts later, in essence tricking customers into thinking they are saving a lot and perhaps enticing them to buy more.
The New York Post is reporting that the retail chain is hiking its prices so it can mark them down during sales periods such as Valentine’s Day.
According to the Post‘s James Covert citing multiple unnamed sources, CEO Mike Ullman apparently put this plan into action this month “with especially lofty markups in the jewelry department.”
The Post even found evidence that this has already happened, particularly in the jewelry department, where JCPenney has allegedly boosted price tags by as much as 225 percent since December.
For example, a half-carat diamond ring set in white gold was marked at $1,999.98 on this week. In December the same item was $1,245. A pair of gold earrings cost $200 in December; they are now cost $449.98.
Business Insider contacted JCPenney for comment; the retailer has yet to respond.
Do you think this practice is underhanded?