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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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HA, HA!!!

Maybe catering your ad campaigns around 1.8% of the population and against the moral foundation of the majority of the population isn't such a bright idea after all.

1 posted on 05/17/2012 4:54:57 AM PDT by Caipirabob
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To: Caipirabob

Agreed.


2 posted on 05/17/2012 4:55:52 AM PDT by MissMagnolia (Being powerful is like being a lady. If you have to tell people you are, you aren't. (M.Thatcher))
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To: Caipirabob
If their competition wanted to kill them off for good, they could launch their own ad campaign. Something along the way of:

CONGRATULATIONS FOR BEING A PROUD PENNY SHOPPER! Or

SHOP PENNY'S WITH PRIDE!

This last ad campaign did for Penny's what "Gay Days" did for Disney World. Now parents have to ask, "Is it safe to take my child to J.C. Penny's?"

Great move guys...just spectacular. *Investor grade face palm*

3 posted on 05/17/2012 5:00:15 AM PDT by Caipirabob (I say we take off and Newt the site from orbit. It's the only way to be sure...)
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To: Caipirabob

Also agreed.

Americans don’t usually shop at faggot stores. JCP has moved themselves into pervert territory and away from family safe. No reason to ever go there again.


4 posted on 05/17/2012 5:01:30 AM PDT by John O (God Save America (Please))
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To: Caipirabob
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%

Their niche was "good quality at reasonable prices for middle-class shoppers". JCP cannot compete against WalMart on price.

5 posted on 05/17/2012 5:05:54 AM PDT by PapaBear3625 (If I canÂ’t be persuasive, I at least hope to be fun.)
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To: Caipirabob

I understand giving minorities ‘a voice’, we all have a voice.

But what the left has done with the gay first President, gay marriage, gay this, gay that..........has pushed Americans too far.

And it’s showing.


6 posted on 05/17/2012 5:07:59 AM PDT by Freddd (No PA Engineers)
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To: Caipirabob
When Penny's started a new pricing policy last year, I thought it was so good I'd shop there and not even bother to go into other stores.
Now, I won't go into a Penny's if you paid me.
7 posted on 05/17/2012 5:16:29 AM PDT by oh8eleven (RVN '67-'68)
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To: Caipirabob

I used to shop at JCPenny. They had good quality American made clothing. That was a long time ago. I quit shopping there way back. They are blind.


8 posted on 05/17/2012 5:21:36 AM PDT by Nifster
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To: Caipirabob

No No No, it has nothing to do with hiring a homosexual to be the face of your company! Its only because of bad business decisions by the new CEO-It has to be!!!!


9 posted on 05/17/2012 5:23:53 AM PDT by icwhatudo (This is not a choice between Romney&Reagan-Its between Romney & most radical leftist Pres in history)
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To: Freddd

I worked at a place where a lesbian was made manager. She immediately begin hiring other lesbians and within a very short time, that part of the company became known as ‘Boys Town’. There was one hiree who was such an angry, vicious butch bulldyke that everyone walked a wide circle around her. She was (and probably still is) the epitome of hatred and self loathing. I couldn’t leave there fast enough.

And, I foresee JCP going the way of McCall’s magazine, renamed Rosie, which went by the wayside after decades of being in the lives of hardworking Americans.


10 posted on 05/17/2012 5:24:43 AM PDT by Cowgirl of Justice
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To: Caipirabob
Some retailing advice for JC:


11 posted on 05/17/2012 5:26:27 AM PDT by Free Vulcan (Election 2012 - America stands or falls. No more excuses. Get involved.)
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To: Caipirabob
< appeasement >

< consequences >

< /sympathy >


< /self-quote >   :-)

12 posted on 05/17/2012 5:27:38 AM PDT by tomkat (:^)
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To: Cowgirl of Justice

JCP has no sales.

Kohl’s has a sale five days a week.

Who is winning ?


13 posted on 05/17/2012 5:31:05 AM PDT by Eric in the Ozarks
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To: icwhatudo
No No No, it has nothing to do with hiring a homosexual to be the face of your company! Its only because of bad business decisions by the new CEO-It has to be!!!!

Right. Because American Express went in the tank when it had Ellen do commercials. Oh, wait.

14 posted on 05/17/2012 5:31:15 AM PDT by Publius Valerius
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To: John O

No reason to ever go there again.
_________________________________

The same goes for Macy’s policy that allows transgenders to dress in the women’s area.


15 posted on 05/17/2012 5:38:43 AM PDT by stars & stripes forever (Blessed is the nation whose God is the Lord!)
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To: PapaBear3625

-—Their niche was “good quality at reasonable prices for middle-class shoppers”. JCP cannot compete against WalMart on price.——

True, and even if they could, it takes years to develop that reputation.

OTOH, I do almost all of my dept. store shopping at Target. I don’t have time to fart around with coupons and sales flyers.

I wonder whether it was the homo thing or the dropping of sales that cost them, since I don’t know how much publicity the homo thing received. I guess it could be both.

Nice going though. I could have been the CEO, done nothing, and saved them quite,a bit of dough.

As an aside, I heard that Staples sales are flat. As a business customer, I’m bombarded with email sales, coupons, and reward programs.


16 posted on 05/17/2012 5:44:46 AM PDT by St_Thomas_Aquinas (hViva Christo Rey!)
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To: Caipirabob

Read the reviews at the link. I agree with every one of them. J C Penny is going the way of K Mart and Sears. Maybe they can buy into K Mart?


17 posted on 05/17/2012 5:45:17 AM PDT by rawhide
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To: Caipirabob

That, and assuming your customers are too thick to make decisions in their own self-interest.


18 posted on 05/17/2012 5:45:23 AM PDT by Arm_Bears (Journalists first; then lawyers.)
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To: Caipirabob

There is something magical when you are using a coupon or buying something on sale, that gets the customer to buy your products. Everyday low pricing does not work in this retail environment. Everyone wants to think they got a good deal.


19 posted on 05/17/2012 5:47:32 AM PDT by rawhide
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To: Caipirabob

Read the reviews at the link. I agree with every one of them. J C Penny is going the way of K Mart and Sears. Maybe they can buy into K Mart?


20 posted on 05/17/2012 5:48:57 AM PDT by rawhide
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