Skip to comments.J.C. Penney jumps after CEO (Ron Johnson) said to be out
Posted on 04/08/2013 2:09:12 PM PDT by abb
J.C. Penney Co. shares jumped 11% in after hours on Monday as CNBC, citing an unidentified source, said Chief Executive Ron Johnson is no longer head of the company.
(Excerpt) Read more at marketwatch.com ...
He’s “out” - as in, the closet?
Too little, too late unless they totally re-brand in the next week or so and go back to the family friendly store they were.
They chose the gays.
Let the gays support them they have a huge population- right?
Too late. The brand has been tainted and thus the company is toast.
What, Apple’s no discounts, no sales brilliant concept didn’t work out at Penney’s? Surprise!
Nothing a name change and a good PR campaign can't fix.
Since JCP is headquartered here, we get some info that doesn’t go nationally. He got drawn and quartered by the Board, and has been rapidly rebranding, restoring coupons, bringing back favorite brands, such as St. Johns Bay for women. But it was not his idea, and he never moved here, never accepted the “culture” of the shopper of JCP, was commuting by private jet every week.
Enough was enough.
Once people are gone, there would have to be a very very good reason for them to come back. Unless they pull off some kind of miracle, JC is toast.
Ellen Degeneres is also out as the spokesperson. She will be replaced by Richard Simmons.
Well the board should not be held harmless. What were they thinking? That Apple’s coolness translated to JCP dry goods? When he would not move there, they should have canned him.
The board should have hired a Macy, Nordstrom or Neiman Marcus ace. JCP could now become the next Radio Shack. All over, but weak.
I think the saying in industry goes something like this: “If the stock price goes up after you leave, take it personal”.
Enough was enough the first week. Why did he last so long?
Say it isn't so. Where will I buy my white socks and underwear? Woe is me. What will I do?
So they are admitting their culture is Gaycee Penny....
But hey, dude wants to be out. Ain’t nothing wrong with that...
Amazon is airing ads for their new Kindle featuring a man and his "husband". How's Amazon doing these days?
Penney's will go the way of Montgomery Ward in a few years, and Sears probably isn't far behind them.
That’s a very accurate summation. Take away sales - the only reason anyone stil shopped there - and you have a dead brand.
What took JC Penney so long LOL!
I haven’t been in a store since they got rid of coupons they used in LA Liars or Red Plum inserts
If Ellen is still in...... I’m still out
I haven’t been inside JC Penney since they stopping doing that offering coupons mostly in LA Liars newspaper on Sunday LOL!
I doubt the company can be salvaged
Haven’t bothered shopping at JCP since they took guns and ammo out of their stores/catalogs. I think that was in the late 80’s.
When I was a kid, you could order M1 Carbines through any of the “big three” catalog retailers - Wards, Sears and JCP.
Now Wards is dead, Sears is on the downhill slide, and JCP is circling the drain.
No it’s not a kneww jerk reaction....I work at Penneys...
The news is true...Ron Johnson was fired this afternoon.
We are rejoicing!
As for sales.....we have marathone employees right now getting things ready for the sales and coupons you will see in the very near future.....
I am very glad about this.....
T the helm now is Mr. Ullman, who served 7 years until 2011....a good move by the board IMO....
So it’s going to get really interesting to see how th is goes now.....
Yep, and I work at Penneys....
His leaving is great news....and yes coupons are comming back...sales...etc...now if they just get rid of Ellen G...I’d feel much better.
Our employees are very happy about Johnson leaving.....but Penneys hasn’t gone so far it can’t be turned around...but it was surely getting close!
J.C. Penny’s “Ron Johnson”, not to be confused with Wisconsin U. S. Senator Ron Johnson (R)
J.C. Penny’s “Ron Johnson”, not to be confused with Wisconsin U. S. Senator Ron Johnson (R)
Ceo Johnson and Ackman, who brought Johnson in, were basically calling the shots......they had a tight grip on the decisions....as you know several key people at the top began leaving.....you have to communicate with people and Johnson was a ‘my way or the highway type’ of guy.
This will change with Ullman leading, even if he holds this position only until they determine who will be the Ceo on a more permanat basis.
I noticed, though, that when they announced that the former CEO would step in again as CEO, the stock went down again. I have no idea what to make of it.
Well when you have a grand exdus of leadership from the top...you get the idea somethings wrong....haa!
Coupons will be back shortly, as will sales...already our store is working at getting ready for it.
You can’t imagine how happy employees are over this news!
Yes, well at this point it might be better to sell the physical assets and open an eBay store.
OH GOODY if they do bring back coupons I may go to JC Penney more often
All those new departments and name brand shops are going to be a problem. Their pricing was dependent upon the new supply method and delay to charge the company.
Now what to do about all the lost suppliers and downgrade of quality? Returning customers will notice it right away.
The BRAND is badly damaged.
2 mommies and 2 daddies catalogs and Ellen? What will happen to the Martha brand in the courts?
I won’t go back!
I was reading a blog a while back that talked about Penney’s brand problem. What exactly is their brand? What do you think of when you think Penney’s? Nothing.
The queer thing was big on Free Republic but was actually trivial.
The real problem was abandoning the heard learned rules of retail.
Sadly for JCP employees, the demographic for the store is gone.
No firearms sales.
No catalog sales.
Weak online sales.
No coupon sales.
No in-store sales.
JCP is just a middleman. JCP doesnt make the clothes that they sale, they just retail clothes that are available elsewhere.
That business model, when combined with pricey retail brickmortar locations, just isnt viable.
If you want to see a model that works, look at Old Navy on the low end and Neiman Marcus on the high end.
The “Penny” in JCP was supposed to be about sales and value. Anchoring mid-market shopping malls without delivering on either sales or value wont cut it.
JCP is burning through its cash and eating up its own equity. It is in a death spiral.
Expensive leases with tiny retail incomes dont mix well and arent sustainable.
JCP dies with a whimper, not a bang, and it wont take long.
Johnson injected $50 Million of his own money to guess at a way to save JCP, which was already on death’s door.
If you work there, get your resume up to date. JCP wont be open much longer.
No it won't be a problem as far as pricing goes.....it washes when all is said and done.
So far there are no “lost suppliers”..and in fact most are more than willing to hang in there thru these transitions.
However, the “stores within a store” concept makes Penny's something it's not. People don't go to Penney's looking for these “new Brands” they're promoting in this mini-mall climate....they want to go where dresses are..or shirts.. or the mens ‘dept’ or womans ‘dept’...Penney's is a DEPARTMENT store...but Johnson's been trying to make it a mini-mall with-in the Malls...that is not going to work.
That is going to be a problem to restructure in the days ahead..but certainly not impossible.
As for Brand...some of the former Brands are being brought back in....a good move...it remains to be seen how the so called new lines do.
So suppliers aren't the problem...more-so.. how to get their base customers to return back to the store....which they have lost..and evident to all.
It's going to be a challenge...but hardly impossible...not only did the stock-market move at Johnson's departure...but the employees were thrilled...this naturally passes to the customer base who loved Penney's so much I think they will come back in time. I couldn't say that had they not fired Johnson.
Go on line...there’s a 20% off coupon already to print...I saw one today...the woman came in BECAUSE she wants to be able to once again tell her husband how much money she saved....it’s important to many women they are seen as thrifty and wise with money....when they took coupons away they took the fun and joy woman get out of “saving” money and telling others about the great deal they got.
JC Penney Shares Implode After Company Says They’ll Bring Back Old CEO
Sam Ro | Apr. 8, 2013, 5:30 PM | 3,261 | 1
Shares of JC Penney have gone on a wild ride in after-hours trading on news of turmoil in the executive suite.
At around 5:00 PM ET, CNBC reported that Ron Johnson was out as CEO of JC Penney.
As soon as the headline crossed, shares of JCP spiked by more than 10 percent.
JC Penney had hired Ron Johnson from Apple to revamp its stores in an effort to boost sales. However, his actions were actually followed by plummeting sales. In its most recently completed quarter, same-store sales fell by 32 percent.
Those after-hour gains slowly slipped and then tanked at around 5:30 PM ET, which was when management announced that former CEO Mike Ullman would return as interim CEO.
Here’s a look at the gut-wrenching swing in the after-hours session via MarketWatch:
A retarded monkey could have succeeded at Apple.
..”If you work there, get your resume up to date.”....
Oh I’ve done that already. But I will always work in retail stores...I love the business.
And though the press touts box stores are a thing of the past...it’s simply not so...our store was amazingly busy...now they may have to close some along the way...many businesses condensing things because of the shifts happening...but woman will always..”go shopping”...and it won’t be just for “name brands”.
I think I hearing Martha Stewart was suing JC Penney for something she still in court yeah how about that
Sweet I am so there on JC Penney site LOL!
I think you’re right, except I think the end will be longer and more drawn out. There is a lot of history in that brand, they’ll fight hard to keep it alive rather than shutter it right now, like might be the prudent way to go. Someone would have to come up with a serious transformation to give it hope, but in the end, it will likely be for naught. Time has simply passed them by, and to the extent they could have adapted and survived, they screwed up the chance.
Still, it’s the board the brought the wonder boy to run the place. Seen it before elsewhere. A lucky stiff wins a lottery at one company and is declared a genius, who can run any other big company. Instead, as I’ve seen more than once, the stiff runs the next company into the ground.
And what was that about? Even Nordstrom has sales, and Penney’s is and never will be in Nordstrom’s class, competing instead against Sears and Target, which nowadays eats everybody’s lunch!
The fact that Johnson is "out" is nothing more than a pseudo reason for the high speed trading systems to drive the stock up to draw investors back in... only to drop after those same high speed traders take their profits a short distance down the road.