The Lesson is - Customers Want a "Deal"

JCP teaches a ‘fair and square’ lesson on pricing
 July 27, 2012 | By Gail Hoffer
"We thought simplifying 590 unique sale events into three types of pricing would be easier, but it turns out that customers and others found the pricing a little confusing," he said. "Now we're going from 590 to 3 to 1: The first price is the right price."

We don't think customers are confused - we think they want to feel like they got a "deal".  EDL pricing makes them wonder "how much lower could they go?".  What most customers do is delay purchasing at EDL until they compare the EDL price with sale prices elsewhere.  It means more work for the customer and when they find the same item elsewhere and validate JCP's price - they buy where they are - rather than return to JCP.

Is New Footprint Making the Difference?

Report: Tesco could exit U.S. if Fresh & Easy doesn’t improve

July 2, 2012 | By Marianne Wilson

NEW YORK — U.K. retailing giant Tesco PLC could give up its American supermarket venture, Fresh & Easy Neighborhood Market, if the chain continues to disappoint and not make a profit, according to various news reports.
In remarks at the company’s annual meeting on Friday, Tesco CEO Philip Clarke said: “If we see there is no chance of success, we’ll do as we’ve just done in Japan,” referring to Tesco’s deal this month to exit that market.
At the same time, however, Clarke sounded an upbeat note about the U.S. venture’s prospects, RetailWeek reported. “Fresh & Easy is improving as a business and I can assure you that it is receiving close attention from the executive team,” he said. “We believe there is great value in the business and, if we get it right, an excellent stream of growth in future years.”
Clarke has refused to bow to shareholder pressure to set a target date for when Fresh & Easy, which launched in 2007, would finally begin to make a profit.

F&E's small urban stores for higher density markets may be making the difference...