A number of retailers struggled to meet their annual projections after deep discounts during the holiday season negatively impacted their bottom line. J.C. Penney, however, was apparently not among those retailers – that department store is now marking down the prices at all of its stores by at least 40 percent.

J.C. Penney has traditionally launched a number of different sales each year. However, this strategy may be encouraging consumers to wait for sales rather than buying now, which was not the intended consequence. Now, the brand will hold three tiers of permanent sales – an "every day" low pricing, a "monthly value" and a "best price" sale on the first and third Friday each month.

"Penney's plan comes at a time when stores are struggling to wean shoppers off the profit-busting bargains that they have come to expect in a weak economy," USA Today notes. "The move is risky because shoppers who love to bargain hunt may be turned off by missing the thrill they might get from feeling like they're getting a deal."

Retailers need to plan their promotions in advance to avoid taking losses on them. Strategies such as the one being employed by J.C. Penney may help retailers structure their promotional efforts more efficiently.

This entry was posted by Retail Pro on Thursday, February 2nd, 2012 at 9:59 am .