MANHATTAN — It's the sale that never ends.
JCPenney shoppers in the city next week may walk out with more than they bargained for — at least 40 percent in savings thanks to a dramatic markdown on prices.
The giant retailer, which has a store in the Manhattan mall in Herald Square, announced Wednesday that it is permanently slashing prices as part of an overall strategy.
The three-tiered plan, beginning Feb. 1, will offer "Every Day" low pricing daily; monthly deals on certain merchandise called "Monthly Value;" and clearance deals called "Best Price."
"We are going to rethink every aspect of our business, boldly pursue change, and create long-term shareholder value, as we become America's favorite store," said Penney's CEO Ron Johnson.
The strategy is Johnson's first splash since joining the company after being an executive for Apple.
"Pricing is actually a pretty simple and straight forward thing," Johnson told the Associated Press. "Customers will not pay literally a penny more than the true value of the product."
The plan, which comes as many consumers continue struggling with the weak economy, is part of an effort to get rid of hundreds of sales and offer simpler pricing.
Savvy shoppers, however, may miss the sales, said Citi Investment Research analyst Deborah Weinsig.
"The big question on investors' minds will be: 'How customers will react to a single price point versus a perceived discount under the old strategy?' she told the AP.
Charles Grom, a retail analyst at J.P. Morgan, agreed that the move might be risky. Shoppers trying to survive in the struggling economy have grown accustomed to sales and bargain prices.
"Shopper fatigue has been building for several years," he told the AP. "He has a lot of wood to chop."
