JCPenney Draws Customers with Liz Claiborne Acquisition

JCPenney is working on a new plan that will affect customers and vendors. Though the department store did not release specific details of the plan, JCPenney did reveal it will not adopt an everyday low-price model similar to Walmart's. Recognizing that it is extremely difficult to compete with Walmart in EDLP, JCPenney could be aiming for more of a hybrid high/low price strategy with its recent acquisition of Liz Claiborne. JCPenney acquired Liz Claiborne's brand portfolio for $288 million in cash, including an advance of $20 million in exchange for the company's agreement to develop exclusive brands for JCPenney.