For those hoping for signs of an improving economy, JC Penney's new strategy reflects a deflationary sign. J.C. Penney slashing prices on all merchandise "NEW YORK â€“ J.C. Penney is permanently marking down all of its merchandise by at least 40% so shoppers will no longer have to wait for a sale to get the lowest prices in its stores. â€” Sale prices become everyday prices. The company will use last year's sales figures to slash all prices at least 40% or lower than last year's prices. So, a woman's St. John's Bay blouse regularly priced at $14.99 could have the "Every Day" price of $7." J.C. Penney slashing prices on all merchandise in new strategy Although JCP will claim this is a consumer oriented strategy, it's actually a strategy that allows JCP to manage their margins better. Even stranger is that this strategy is WalMart's strategy...so what is JC Penney doing mimicking WalMart's strategy?....strange times we're living in. The same thing is happening in my industry. Retailers like CVS, Walgreens and Rite Aid have dramatically increased the number of "Buy 1, Get 1 Free" ad events to increase their market share. But all it has accomplished is a more competitive environment and less predictible margins and that's not good from Wall Street's perspective. Like JC Penney, in my industry, Walgreens has stated they will reduce/eliminate "BOGO Free" sales and replace them with "Buy 1, Get 50% Off" an additional item. They are hoping their competitors will follow. This is all good from a consumer perspective, but not as an economic indicator.