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The company has been doing plenty of backpedaling and is now adding clearance events to the calendar in addition to the first and third Fridays of the month. Starting last week, it is now using the word "best clearance" instead of "best prices." Credit Suisse retail analyst Michael Exstein said more needs to be done to create a sense of urgency for the shopper. "A combination of poor messaging, tampering with the merchandise flow and a slowing of the overall economic environment seem to have contributed to the current state of business," wrote Exstein in a report published Tuesday. "This sales erosion makes a turnaround even more daunting as the second half approaches," Exstein wrote. In response, Penney has either slowed or canceled whatever orders it has been able to because of slower sales, he said. That has made its suppliers concerned about whether Penney's plan will work and could impede the company's strategy to lure in new brands, he said. The company has already announced a slew of new names including Betsey Johnson and Vivienne Tam who are coming out with exclusive affordable versions for Penney for the fall. Shares of J.C. Penney Co. shares fell $1.27, or 5.8 percent, to close at $20.76, making it the No. 5 decliner on the S&P 500 index. The stock earlier traded as low as $20.59, a level last seen in September 2010.
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