Johnson gets a lot of flak these days - much of it deserved - but most retailers are dealing with the End of the Consumer Era with equal ineptness. Too many products chasing too few dollars, and the shakeout is just beginning. Many blame online sales, and while Amazon has hurt traditional retailers a great deal in the short run they are also staring straight ahead at the same giant contraction bearing down on them.
Think about it. In the last decade there has been an absolute dearth of development, just teeny incremental changes. No real explosive idea.
It seems like since 9/11 we've focused on war and the economy and society has either just maintained or declined.
Enter Obama.
Since 2008 Obama has gone out of his way to diminish America, both domestically and abroad. He has been fantastically successful.
We now have trillions in added debt with record amounts of people subsisting on government payouts. Real employment is about 12% with millions out of the workforce and on the government dole. Inflation, while yet tame, is real. Gas prices have now risen nearly $0.50 per gallon in the last two weeks alone. Taxes were just increased on all Americans in January. Wages are declining. Middle class Americans are struggling mightily to make ends meet.
Amidst this background there ARE going to be shake outs as you mention. There is nothing new being created at the retail level. Middle class consumers are shrinking and those left are strapped. Those on the government dole make their monthly trek to WalMart for staples.
What I find amazing is that it's just JC Penney that is struggling. I think the dam will break in the not so distant future and we will see a lot of businesses, unfortunately, going bust.
Yes....I agree with most you posted. These “old time” large retailers are all going to go away. If you think about it, this began with that old company Montgomery Ward in the early 70’s.
Like the buggy whip, I guess.
I wonder when Kohl’s will fall apart. I’ve never understood that store.
While you're correct that retail is already a tough market, this guy has basically destroyed the customer base this company has acquired over the years. The elimination of the coupon, the ads and (keeping in mind that a number of JCPenney stores are part of the community) the past treatment and firings of some long time employees have been the main causes.
This entire hiring (of Johnson) was dumb from the start. They took a guy who was successful in expanding new stores (Target) and opening new retail stores (Apple). They allowed him complete control to implement changes which were never proven successful. No where on his resume does he have any experience in improving an existing retailer with 1100 stores.
I'm not one to complain about anyone’s compensation, but I find it ironic that for a company that is now cash strapped, Johnson received over $53 Million in compensation in 2011.....I can't find what his numbers were for last year.