After a terrible year with disappointing holiday sales figures and a share price that is fifty percent of its value a year ago, JCPenney has now reversed its decision to have one price without sales or coupons. It has announced that it will re-introduce sales pricing and promotions. However, the decline in the company's fortune has meant it is reneging on its promise to implement RFID tags for all the items sold at JCPenney by February 2013. It also means that it will not implement the plan to have all stores fitted with the necessary hardware and software to read the RFID tags and send data to improve supply chain and inventory visibility.
By backing off the RFID
implementation plan it also reduces JCPenney's ability to allow customers to self-checkout. Cash register transactions cost retailers ten percent of their capital outlay each year and some are keen to remove that expense. JCPenney have indicated that they will launch a smaller RFID implementation on certain lines, such as footwear, fashion jewelry, and men and women's denim. Plans for a roll-out to the company's entire inventory have yet to be decided.
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