Management is overhauling its merchandising approach by editing out brands/styles, investing in speed, building out its plus-size business and shifting mix towards casual/athletic
JCP’s new pricing strategy cuts across initial markups, coupons and clearance and should benefit sales/GM as it relies more on data to drive its pricing and couponing decisions. The company has assigned every SKU a role (core, impulse, traffic driver) and intent, which is factored into its pricing algorithm. Pilot results have been “compelling,” and the company plans to roll out the new pricing system across the chain later this quarter. Management plans to repay at least $500mn of debt in 2017 with proceeds from its home office sales (~$300mn) and free cash flow (guidance for $300-400mn including $100mn of other asset sales).
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