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J.C. Penney Is the New Sears: Ron Johnson Has Done “Incalculable Damage,” Davidowitz Says
Daily Ticker ^ | Aaron Task

Posted on 05/17/2012 4:54:55 AM PDT by Caipirabob

J.C. Penney (JCP) shares tumbled Wednesday after the retailer reported a much wider-than-expected first-quarter loss, suspended its dividend and saw weakness across all core metrics.

In an apparent rebuke to new CEO Ron Johnson's strategy to change the company's focus from discounts to everyday low prices, total sales fell 20% while same-store sales declined 19% and gross margins fell to 37.6% from 40.5% as foot traffic in the stores dropped 10%.

"Our marketing isn't doing the work," Johnson said in a conference call. "We've got to get our pricing across. Coupons were a drug, they really drove traffic. [Customers] need to understand the value we're offering."

But it's Johnson, not J.C. Penney's customers, who has a problem understanding what the retailer needs, says Howard Davidowitz, a veteran retail banker and CEO of Davidowitz & Associates.

"He's caused incalculable damage," Davidowitz says of Johnson, who joined J.C. Penney last year after running Apple's (AAPL) retail operations. "The customers are everything. They don't know what the hell he's doing."

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Chit/Chat; Miscellaneous; Weird Stuff
KEYWORDS: degeneres; gay; homosexualagenda; jcp; jcpenney; jcpenny; ronjohnson
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To: PapaBear3625

Of course JCP can’t compete on price with WM, but its not trying to. On the same token, you won’t find the better brands and quality at WM that JCP has either.

THere is overlap obviously, but you can’t walk into a wal mart and find everything you find at JCP and vice versa.

JCP is a mall department store, WM is a cattle call box store.

We’ll see if this guys vision works, me personally I’d rather know if I go into JCP, I am getting a good price, not worry about having coupons or sales. Though I am not their primary customer either.

20% drop hurts, but major changes take time, is this sort term pain to adjust for better long term? Or is it just a massive screw up? Time will tell.


51 posted on 05/17/2012 8:18:18 AM PDT by HamiltonJay
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To: Freddd

In an economy like today’s, pushing a divisive social issue is a really bad idea. Especially for an already-struggling retailer where every sale matters. It’s better to simply stay neutral and avoid alienating customers.


52 posted on 05/17/2012 8:19:07 AM PDT by Nickname
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To: St_Thomas_Aquinas

I used to tell my wife “You are going to “Save” us right into the poor house!”.

But she was spending her own money - often on me - so I really didn’t care too much.

It was mostly a joke because she would come to me trying to justify her purchases - as if I cared. So I acted like I cared that she “saved” money on this or on that - and “only” spent $500 - or that she just got $200 for old clothes she sold on consignment.

But I could tell how much she was pleased (like a gambler) by the fiction that she “saved” something - got a real big score - BWANA BIG SHOPPER bring back BOO COUP big SALE - tribe feast well tonight!

Maybe my devil may care attitude was brought about somewhat by the fact that (not only was it her own money) she would put on a “fashion show” of the new clothes she bought - or my favorite - new shoes - because she would model those wearing ONLY the shoes!

Good times!


53 posted on 05/17/2012 8:25:51 AM PDT by allmendream (Tea Party did not send GOP to DC to negotiate the terms of our surrender to socialism)
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To: Caipirabob

Johnson came from the alternative universe of Apple. This explains a lot.

Liberals are basically psychopaths who adore themselves and who are under the illusion they are amorally and intellectually superior to the majority - Penny’s customer base.

The liberal authoritarian personality and it’s pack of politically correct lies works amongst liberals or a captive audience - consumer base - like Apple. Normal people walk away from it because it is basically insane and offers no value in the real world where they exist. People like Johnson gets his rocks off sticking his fingers in the eyes of the kind of people who shop at JC Penny’s.


54 posted on 05/17/2012 8:37:41 AM PDT by SaraJohnson
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To: SaraJohnson
“Our marketing isn't doing the work,” Johnson said in a conference call. “We've got to get our pricing across. Coupons were a drug, they really drove traffic. [Customers] need to understand the value we're offering.”
*******************************************

Don't you love these liberals? According to him, the problem can't be that their customers are rejecting his policy changes, they are just to dumb to understand them.

55 posted on 05/17/2012 8:52:14 AM PDT by kara37
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To: Caipirabob

In Houston you can spend 30 minutes walking through a JC Penney and not hear English being spoken once, from the customers or the sales associates.

Their “everyday low price” scheme was bound to fail for this clientele.


56 posted on 05/17/2012 8:54:57 AM PDT by Carlucci
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To: Eric in the Ozarks

I remember when they had wire baskets on overhead trollies.


57 posted on 05/17/2012 8:57:45 AM PDT by smithandwesson76subgun (full auto fun)
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To: allmendream
my favorite - new shoes - because she would model those wearing ONLY the shoes!

Nice. How do I suggest that one to my wife without sounding like I've been hanging out on some creepy pervo website?

58 posted on 05/17/2012 9:06:31 AM PDT by ArrogantBustard (Western Civilization is Aborting, Buggering, and Contracepting itself out of existence.)
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To: smithandwesson76subgun

Wow.


59 posted on 05/17/2012 9:09:11 AM PDT by Eric in the Ozarks
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To: ArrogantBustard

Say “Why don’t you model those shoes for me - JUST the shoes! ;)”


60 posted on 05/17/2012 9:19:44 AM PDT by allmendream (Tea Party did not send GOP to DC to negotiate the terms of our surrender to socialism)
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To: Eric in the Ozarks

“JCP has no sales.
Kohl’s has a sale five days a week.
Who is winning ?”

Not only reason Kohl’s is doing better. There are Kohl’s stores locally. JC Penney’s are only in Malls (at least here in my area). With gas over $3.65 a gallon, why run five towns over when there is a Kohl’s in town?


61 posted on 05/17/2012 9:43:42 AM PDT by Mrs. B.S. Roberts
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To: Caipirabob

I received the summer catalogue in the mail about a week or so ago. I was appalled that one entire spread featured a “partner” family..two lesbians and their adopted children. No where in the catalogue was any advertising for plus size clothes (which I wear). Apparently you can be a lesbian to get attention at JCP; just not a fat person. Go figure!


62 posted on 05/17/2012 10:20:05 AM PDT by SandyLynn
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To: SaraJohnson
Johnson had 25 years experience at ‘Target’ Stores before going to Apple. So it's pushed Penney's has the best CEO bringing both the retail experience and the tech experience needed to bring Penney's into the 21st Century.

You can tell he's using his Target experience as the catalog reflects this....Nobody likes the catalog....it's a fail big time. But the store does resemble more of a Target feel in some of their approaches.

Hiring Ellen and then promoting the homosexual mothers in their latest catalog was not well received by employees nor the customers.

Though I work part-time at Penney's I'm now looking for other work as I do not want to be associated with a company ‘promoting’ homosexuality. Bad enough you have to work among them with their flaming streaked hair and bizarre dress to meet the “diversity” standards. Sheesh!

I remember in a company meeting when they announced Ellen as their new Spokesman....eyes rolled! But the catalog spread really hit a cord with many at the store. Just going too far into the “dark side” of life. Others are planning on leaving as well. BTW they are letting go many longterm employees and managers....as well eliminating catalog dept. Store is operating with skeleton crews now....hiring young people at lower wages and part-time to fill where needed.

63 posted on 05/17/2012 10:49:47 AM PDT by caww
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To: SandyLynn

Yes, the catalog spread spun customers heads....as they are definately “promoting” the homsexual agenda now....along with the “green” movement.

Nobody likes the new catalog, which is really a knock off of Targets, for obvious reasons as Johnson had 25 years with Target before going to Apple.

I truly hate the changes....it’s more than just changes...it’s the whole atmosphere within the store now from customers to employees. Customers are testy to say the least....and employees wonder if their job isn’t going to be axed next as they eliminate various dept. and manager positions. Most long termers are being offered part-time jobs or a serverance to leave. Most are leaving.


64 posted on 05/17/2012 10:56:21 AM PDT by caww
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To: Caipirabob
same-store sales declined 19%

How were same-sex sales? I'm guessing that, as Jake Taylor said in Major League, they didn't 'quite have the distance'.

65 posted on 05/17/2012 11:00:32 AM PDT by Colonel_Flagg (Obama vs. Romney: Zero x Zero = Zero.)
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To: caww

LOL! He’s probably the loser who went on the loud and proud anti-Christian binge at Target one Christams. I have not shopped there since.

I’m sorry he’s stained your work place. It looks like you are wise to move out before he gets a chance to crash the joint. Liberals always crash everything they touch. Success is hard work, good character and God’s blessing helps, too. None of that will be happening in a liberal operation.


66 posted on 05/17/2012 11:37:15 AM PDT by SaraJohnson
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To: Caipirabob

Well said.
JC Penny can take Ellen Degenerate and their fags and shove it. I’m done with them.


67 posted on 05/17/2012 1:07:19 PM PDT by patriot08 (TEXAS GAL- born and bred and proud of it!)
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To: Publius Valerius

I get your point and have expressed mine rather poorly, I’ll admit...
It just doesn’t seem the same to me.
Your other point is valid, too...
I don’t remember the Amex ad with Degenerate but also haven’t seen her JCP ads...just the print ad with Heather’s two mommies. Did it for me...
I am probably making excuses for Amex because I love the card...


68 posted on 05/18/2012 7:03:16 AM PDT by matginzac
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To: Caipirabob; All
Penneys is tainted with far left/progressive groups, when I canceled my charge card this morning, Isearched for any conservative group and found none. What I did find was located on Penneys “Heritage of Giving Page” ALL Progressive Left Social Justice groups such as:

Human rights Campaign: Working for Lesbian, Gay, Bisexual and Transgender Equal Rights

National Urban League: “Occupy the Vote” openly supports Obama and Calls on ALEC to Support Repeal of "Kill-At-Will" and Voter I.D. Laws

NCLR (National Council of Laraza): nuff said

Several other groups listed, did not bother to check out, as all the names were progressive left groups.

69 posted on 06/01/2012 9:40:21 AM PDT by defal33 ("I Am Andrew Breitbart")
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To: Caipirabob; All
Penneys is tainted with far left/progressive groups, when I canceled my charge card this morning, I searched for any conservative group and found none. What I did find was located on Penneys “Heritage of Giving Page” ALL Progressive Left Social Justice groups such as:

Human rights Campaign: Working for Lesbian, Gay, Bisexual and Transgender Equal Rights

National Urban League: “Occupy the Vote” openly supports Obama and Calls on ALEC to Support Repeal of "Kill-At-Will" and Voter I.D. Laws

NCLR (National Council of Laraza): nuff said

Several other groups listed, did not bother to check out, as all the names were progressive left groups.

70 posted on 06/01/2012 9:42:17 AM PDT by defal33 ("I Am Andrew Breitbart")
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To: Caipirabob; All
Penneys is tainted with far left/progressive groups, when I canceled my charge card this morning, I searched for any conservative group and found none. What I did find was located on Penneys “Heritage of Giving Page” ALL Progressive Left Social Justice groups such as:

Human rights Campaign: Working for Lesbian, Gay, Bisexual and Transgender Equal Rights

National Urban League: “Occupy the Vote” openly supports Obama and Calls on ALEC to Support Repeal of "Kill-At-Will" and Voter I.D. Laws

NCLR (National Council of Laraza): nuff said

Several other groups listed, did not bother to check out, as all the names were progressive left groups.

71 posted on 06/01/2012 9:42:45 AM PDT by defal33 ("I Am Andrew Breitbart")
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To: defal33
I apologize for the amateur trigger finger triple ditto post :(
72 posted on 06/01/2012 9:57:22 AM PDT by defal33 ("I Am Andrew Breitbart")
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To: Cowgirl of Justice

Yep! Whenever I go to a store and see one lesbian working there, I know there will be others. At the Loewe’s by our house, there has GOT to be a lesbian doing the hiring. There’s no other way that particular tiny minority would be so well represented otherwise.


73 posted on 09/27/2012 10:00:54 AM PDT by ChocChipCookie
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