I don’t want to write too much about JC Penney’s new business model (that would require a whole other post) but why is this strategy key to brick and mortar retail?
- Example 1: Gap – Always has 40% off. So why would you every buy anything full price?
- Example 2: Macy’s – You get % off, sometimes it even looks like a great deal (let’s say 40%-50% off item but then when you get home and compare to Amazon it’s either the same price or higher)
- Example 3: Nordstroms – has sales but rarely and you always know you are getting a value
With today’s technology, price is becoming transparent. Retailers aren’t able to play the discount game and those that continue will parish.