Shares of JCPenney (NYSE: JCP) tumbled on Friday after the company reported a decline of more than 50% in third quarter profits, driven largely by extremely weak consumer spending.

Friday also marked the launch of the company's 2008 Christmas Campaign, which will aim to convince consumers that JCPenney offers products similar to those found at higher-end stores at much better prices. Recognizing that the market is weak and that the company's core value-oriented consumers are likely to be stingy, JCPenney is hoping to profit from the trading-down of people who would normally shop at stores like Macy's (NYSE: M) but are feelings strapped.

"It's going to be a real dogfight out there for the customer's dollar," chief marketing officer Mike Boylson told The Wall Street Journal (subscription required). "We need to take market share from somebody else."

Aeropostale (NYSE: ARO) has succeeded in doing just that in the teen apparel market, with its lower price points luring in former Abercrombie & Fitch (NYSE: ANF) loyalists.

The problem may be that the weak economy will lead to a highly promotional environment at all retailers, and the prestige associated brands like Macy's and Bloomingdales combined with big sales could prevent JCPenney from making inroads.