JCPenney plans to keep holiday prices for top products in line, lower than last year
Inflation picked up in September more than expected
JCPenney invests $1B to upgrade stores across US: 'Make every dollar count'
JCPenney CEO Marc Rosen discusses the challenges shoppers are facing and the company's $1 billion investment to upgrade stores.
JCPenney CEO Marc Rosen pledged to keep prices for most of its top products during the holiday season the same, if not lower than last year.
"We're committed to making our Black Friday prices for almost all of [its most popular gifts] the same or lower than last year," Rosen said on a call with reporters Monday.
However, the deals on such products will come well before the shopping holiday event. According to Rosen, the over 120-year-old department store chain will "offer Black Friday level pricing opportunities throughout the month of November."
Its first sale – Black Friday Early Access – kicks off as early as Nov. 3 with its final sale launching in mid-December.
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This is part of Rosen's ongoing mission to revive the business by better catering to working families – who it sees as its core customer. Rosen previously told FOX Business that its main customers are the teachers, construction workers and medical workers in our communities who have seen expenses rise by $700 on a monthly basis over the past few years.
As part of its transformation after filing for bankruptcy in May 2020, Rosen – who took the helm in 2021 – said that the company has been revamping its product offering, making sure it is a cheaper alternative to other department stores to boost traffic within its customer base.
A sign is posted on the exterior of a JCPenney store at The Shops at Tanforan on Sept. 1, 2023 in San Bruno, California. ( Justin Sullivan/Getty Images / Getty Images)
"As the retailer for America's diverse working families, we understand how important and also at times how stressful the holidays can be for our customers, which is why we want to make sure that they don't have to make trade-offs when they're shopping for holiday gifts, hosting essentials, or for the perfect festive outfit to help celebrate the season," Rosen added on Monday's call.
Persisting inflation – which rose more than anticipated in September – and fears of a potential recession have been weighing on the minds of consumers.
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What is worse is that economists are also concerned that consumers may grow more cautious in the coming months as student loan payments resume and high interest rates continue to work their way through the economy.
Black Friday sale at JCPenney at the Glendale Galleria, Nov. 25, 2022, in Glendale, California. (Francine Orr / Los Angeles Times via Getty Images / Getty Images)
"Amidst a challenging economic backdrop, our consumers are feeling considerably pressured to make their dollars stretch even further this holiday season," Rosen said.
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While some of their customers anticipate overspending,"many are trying to keep spending flat compared to last year," he said, citing a survey conducted by the company.
He further noted that three quarters of consumers are concerned about the impact of inflation on holiday prices.
FOX Business' Megan Henney contributed to this report.