Pricing

When J.C. Penney announced its radical no-sale "Fair and Square" pricing strategy at the beginning of the year, comp-store numbers started tumbling soon thereafter. The retailer announced earlier last month that it would backtrack on the plan a bit, having concluded (correctly) that consumers like the word "sale." Then its top marketer abruptly resigned. There's speculation that CEO Ron Johnson will have to cave and return to incessant couponing and sale events. I hope not.

After 9/11, political leaders and commentators had a suggestion to boost American spirits and fuel patriotism: Go shopping. This Fourth of July, more Americans are doing the opposite: barbecuing instead of buying. A fifth of Americans (21 percent) said they don't plan to celebrate Independence Day and those who are plan to spend less than last year, according to a survey released Sunday of a little more than 1,000 people by Visa.

Zone pricing, the practice of selectively raising or lowering prices on products based on a variety of factors, is common in retail. Consumers, for the most part, understand there are differences based on factors such as real estate costs. People in the New York metropolitan area, for example, expect to pay more for a Big Mac in Manhattan than they would in the suburbs. But they are not likely to be as understanding if retailers are charging higher prices for goods or services based on criteria that is less clear. 

Toys"R"Us has enhanced its loyalty program with the launch of a new integrated, point-based system that delivers streamlined benefits for members, as well as new and existing "R"Us credit card holders. Rewards"R"Us members can now enjoy unlimited access to expanded loyalty benefits when shopping at Toys"R"Us and Babies"R"Us stores nationwide and online at Toysrus.com and Babiesrus.com. Toys"R"Us is also launching its new credit card program, including an "R"Us-branded credit card and a MasterCard co-branded card, issued by GE Capital Retail Bank, connecting cardholders with all the perks of Rewards"R"Us and more. 

A magazine for teenage girls will try, joined by marketers and retailers, to add another “special” day to the American marketing calendar already crowded with celebrations both real (Christmas, Halloween) and fanciful (Black Friday, Cyber Monday).

Although almost all consumers shop big box retailers, Empathica Consumer Insights Panel found only 38 percent of consumers report that big box retail employees appear to be enjoying their jobs.

Be afraid. Be very afraid. Pricing is getting scary, says Jon Manning, founder and managing director of Pricing Prophets and resident pricing expert for Upstream Commerce in this dynamite video about ten things retailers should worry about with regard to competitive pricing today.

With J.C. Penney’s new pricing structure echoing that of Wal-Mart’s EDLP model, the most recent Retail Ratings Reports from BIGinsight indicates both retailers could face challenges when it comes to the women’s clothing category. For years Wal-Mart has led Kohl’s in the category, however, in November of 2011 Kohl’s surpassed the discounter and the two have been tangling for the top position ever since.

Ikea's new kiosk-based loyalty program IKEA FAMILY has already attracted more than 1.6 million members since its launch a few months ago. IKEA FAMILY offers special offers and benefits to customers, as well as program-branded merchandise and promotional events, Diane Zoll, manager of IKEA FAMILY US, said in a company press release. "Not only are there now millions of members, but members are highly engaged and spend more when they visit Ikea," Zoll said. The membership journey begins in-store at the FAMILY Shop, which features unique FAMILY-branded merchandise that members can use every day, from backpacks to bathrobes, with members-only prices.

I've always thought of ladies with bags covered in designer logos as walking advertisements. However, I understand and appreciate the high-quality materials and level of craftsmanship that comes with the premium price tag. Being one who is drawn to deals and always wanting a bargain, I turn to flash-sale sites to look for designer goods. Recently, I visited Gilt.com, a flash-sale site that offers lower prices on luxury brands, and found the perfect bag for spring. I definitely felt guilty for coveting a tote that was equal to two round-trip tickets to the Caribbean.