Free Republic
Browse · Search
General/Chat
Topics · Post Article

Skip to comments.

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
Navigation: use the links below to view more comments.
first 1-5051-73 next last

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
[ Post Reply | Private Reply | View Replies]

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))
[ Post Reply | Private Reply | To 1 | View Replies]

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...)
[ Post Reply | Private Reply | To 1 | View Replies]

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))
[ Post Reply | Private Reply | To 1 | View Replies]

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.)
[ Post Reply | Private Reply | To 1 | View Replies]

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)
[ Post Reply | Private Reply | To 1 | View Replies]

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)
[ Post Reply | Private Reply | To 1 | View Replies]

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
[ Post Reply | Private Reply | To 1 | View Replies]

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)
[ Post Reply | Private Reply | To 1 | View Replies]

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
[ Post Reply | Private Reply | To 6 | View Replies]

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.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Caipirabob
< appeasement >

< consequences >

< /sympathy >


< /self-quote >   :-)

12 posted on 05/17/2012 5:27:38 AM PDT by tomkat (:^)
[ Post Reply | Private Reply | To 1 | View Replies]

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
[ Post Reply | Private Reply | To 10 | View Replies]

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
[ Post Reply | Private Reply | To 9 | View Replies]

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!)
[ Post Reply | Private Reply | To 4 | View Replies]

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!)
[ Post Reply | Private Reply | To 5 | View Replies]

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
[ Post Reply | Private Reply | To 1 | View Replies]

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.)
[ Post Reply | Private Reply | To 1 | View Replies]

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
[ Post Reply | Private Reply | To 1 | View Replies]

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
[ Post Reply | Private Reply | To 1 | View Replies]

To: Caipirabob; All

This is the problem with know it all executives and advertising. He is thinking like a democrat. He said “marketing has not done its work” as if marketing only proces sales. Bad marketing, like the jcpenny fiasco, COSTS sales.

JCPenny now has a stigma associated with it caused by this “bad taste” campaign. Cause and effect.


21 posted on 05/17/2012 5:54:45 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Caipirabob

DITTO. Ask JLo.


22 posted on 05/17/2012 5:59:08 AM PDT by daisy mae for the usa
[ Post Reply | Private Reply | To 1 | View Replies]

To: Caipirabob
I don't truly believe that the JCP advertising is solely responsible for the plunge in store sales (a plunge which might actually be worse than reported). More likely, a combination of bad moves, including the advertising.

Most of JCP’s competition carry similar (or the same) merchandise at similar prices. What helped keep Penney's shoppers loyal was the friendly atmosphere and service they received from store employees, in combination with the coupons. It was a middle America store. In less than a year, Johnson has alienated much of the JCP customer base.

The coupons are now gone as are a number of those same employees, as Johnson terminated a number of employees, some who had been with the store for over 20 years (http://www.freerepublic.com/focus/f-chat/2879419/posts). Their roles are being filled by the overwhelmed and underpaid remaining staff.

In addition, I've heard the stories of how those longtime employees were let go....told they were fired on the spot and escorted out of the store by security. Not exactly the kind of stories that promote customer favor in a community.

23 posted on 05/17/2012 6:06:00 AM PDT by Rational Thought
[ Post Reply | Private Reply | To 1 | View Replies]

To: St_Thomas_Aquinas

I don’t know either. I have never shopped at Penney’s, for no particular reason but when they started those new commercials, I didn’t get them. I looked up their supposed new policy and it just sounded like a bunch of double speak.

All I’ve ever learned about retail is that there are a certain percentage of the people who have to have the “new” things first, no matter the cost. Then the discriminating, who are waiting for a lower price and then the cheap ones who will wait for steep discounts.

I know people who plan all their shopping by the sales and would never buy anything not on sale.


24 posted on 05/17/2012 6:06:29 AM PDT by tiki
[ Post Reply | Private Reply | To 16 | View Replies]

To: St_Thomas_Aquinas

I had another thought, the reason Kmart has gone steadily downhill is that they have great sales prices in their brochure but they never have the sale merchandise when you get there and they still haven’t figured that out.

You have to get people into the store and then hope they’ll see things they just can’t live without that aren’t on sale.


25 posted on 05/17/2012 6:10:48 AM PDT by tiki
[ Post Reply | Private Reply | To 16 | View Replies]

To: Caipirabob

His having a pants-wearing lesbian who trashes the sacrament of marriage every day that she’s on probably doesn’t help.

Just to see that he/she/it on their advertising turns me off 100%.

I won’t even park my car outside their door to walk thru it to get to the other stores.

1.8% of the population is doing tons of damage to our country, and this kind of nonsense doesn’t help.


26 posted on 05/17/2012 6:17:24 AM PDT by laweeks
[ Post Reply | Private Reply | To 1 | View Replies]

To: Caipirabob

They screwed up in both social issues and fiscal policies. The sales are what kept folks coming and helped them reduce old inventory. The “everyday low proces” was a scheme to cut losses/increase profits on inventory that nobody wanted at original prices and is having the exact opposite effect - now they can’t sell it at “everyday low prices” and don’t exercise the sales mechanism to clear it. Eventually they will fill up with items nobody wants and can turn into a museum instead of a department store.


27 posted on 05/17/2012 6:25:38 AM PDT by trebb ("If a man will not work, he should not eat" From 2 Thes 3)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Caipirabob
Photobucket
28 posted on 05/17/2012 6:25:58 AM PDT by baddog 219
[ Post Reply | Private Reply | To 1 | View Replies]

To: rawhide
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.

I know. My wife works as Dillard's where they don't believe in coupons and rely on their every-day-low-prices as a customer draw.

Down on the other end of the mall is Macy's where they usually have daily coupons that bring in customers. As some of the freepers have mentioned, having a coupon in your hand is better psychologically then just saying we have every-day-low-prices (which Dillard's does not necessarily have).

Dillard's marketing stinks. And since JCP has latched on to a disgusting full-fledged lesbian as their spokeshomo, I won't go in the store for any reason.

29 posted on 05/17/2012 6:26:04 AM PDT by laweeks
[ Post Reply | Private Reply | To 19 | View Replies]

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!!!!

Kinda like making Rosie O'Donnell the face of K-Mart...History repeats...

30 posted on 05/17/2012 6:26:52 AM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
[ Post Reply | Private Reply | To 9 | View Replies]

To: Caipirabob

I had shopped at JC Penney off an on for years. After this guy took over and started his campaign against traditional values, I stopped shopping there.


31 posted on 05/17/2012 6:28:39 AM PDT by B Knotts (Just another Tenther)
[ Post Reply | Private Reply | To 1 | View Replies]

To: tiki

——You have to get people into the store and then hope they’ll see things they just can’t live without that aren’t on sale.——

The loss leader....

When I was a kid, my dad used to take me grocery shopping on Saturday mornings. We bought every loss leader at four or five different supermarkets. It took about three hours. I thought it was normal.

Now that I think about it, maybe that’s why I hate grocery shopping.8-)


32 posted on 05/17/2012 6:31:43 AM PDT by St_Thomas_Aquinas (hViva Christo Rey!)
[ Post Reply | Private Reply | To 25 | View Replies]

To: Publius Valerius
We used to shop there for school clothes (uniform garb) for the kids in parochial school.

With a homosexual 'spokesperson"? No.

Now we order on line.

33 posted on 05/17/2012 6:31:58 AM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
[ Post Reply | Private Reply | To 14 | View Replies]

To: Eric in the Ozarks

In a world full of Belks, Walmart, Target, and Kohl’s why do we need a JCP?


34 posted on 05/17/2012 6:39:11 AM PDT by csmusaret (Obama's new slogan: "Fo Mo Mo Fo.")
[ Post Reply | Private Reply | To 13 | View Replies]

To: Free Vulcan

awesome. my co-workers are all wondering what I am laughing at...


35 posted on 05/17/2012 6:41:37 AM PDT by Paytriot (Live long and prosper)
[ Post Reply | Private Reply | To 11 | View Replies]

To: Caipirabob

You have to wonder just WHO is now behind the mirrors in JCP’s dressing rooms, and just WHAT they are doing? Say...what is that low buzzing hum..?


36 posted on 05/17/2012 6:42:17 AM PDT by who knows what evil? (G-d saved more animals than people on the ark...www.siameserescue.org.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Eric in the Ozarks
We are all definitely Kohl's shoppers now. They remember us monthly and sometime’s twice a month, sending us flyers and surprise coupons.

Being a Kohl's credit card holder (the only one besides my AmEx and Visa) I am sent coupons that you peel apart, revealing a discount- 15%, 20% or 30%- and I have gotten a 30% off in the past two mailers. They then give me an additional $10 certificate for every $50 I spend- on top of the additional posted discounts from usually 20-60%!! All of the employees are so friendly and seem so happy. Furthermore, I am not dragged into some radical political statement by some activist at the sacrifice of employees’ livelihoods just to prove a point that if you shove it in people's faces long enough, they will just accept you as normal.

37 posted on 05/17/2012 6:43:01 AM PDT by Cowgirl of Justice
[ Post Reply | Private Reply | To 13 | View Replies]

To: Publius Valerius

Not the same thing!
You decide to shop at a place by going there...a proactive choice.
Amex usage is less “proactive” and the ads are less provocative...
(Lousey explanation, I know, but hope you get the idea...)


38 posted on 05/17/2012 6:44:32 AM PDT by matginzac
[ Post Reply | Private Reply | To 14 | View Replies]

To: csmusaret

I remember the JCP store in my hometown had a pneumatic tube system to each sales desk. The clerk would put the sales slip and customer cash in a cylinder that would shoot upstairs to be reviewed by the manager.

Change from your cash and the approved sales slip would be fired back in about a minute.

Yeah, I know it dates me...


39 posted on 05/17/2012 6:45:27 AM PDT by Eric in the Ozarks
[ Post Reply | Private Reply | To 34 | View Replies]

To: Caipirabob
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%.

My wife bought $790 in furniture and approx. $425 in other items at JCP in Q4 2011. In Q1 2012 (the period reflected in the dismal results above)? NOTHING. She cut them off and will never but so much as a sock ever again.

40 posted on 05/17/2012 6:48:22 AM PDT by montag813 (No Amnesty - Enforce the Law! http://www.StandWithArizona.com)
[ Post Reply | Private Reply | To 1 | View Replies]

To: montag813

wouldn’t set foot in the place once they openly marketed out of the closet......


41 posted on 05/17/2012 7:05:50 AM PDT by nevermorelenore
[ Post Reply | Private Reply | To 40 | View Replies]

To: Caipirabob
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.

Obama has made the very same mistake.

42 posted on 05/17/2012 7:09:03 AM PDT by dfwgator
[ Post Reply | Private Reply | To 1 | View Replies]

To: Caipirabob

J.C. Penny is still in business????????


43 posted on 05/17/2012 7:13:28 AM PDT by ontap
[ Post Reply | Private Reply | To 1 | View Replies]

To: Caipirabob
Shoppers - like gamblers - do not usually care how much they spend (lose) over time - so long as they occasionally get the thrill of a low sale price or jackpot.

While lower prices every day may make more sense for a shopper's budget - most hard core shoppers are looking more for a thrill of “saving” money - even if they end up spending more overall.

Shopper A goes to a store with low prices and no sales - buys the same 10 items and spends $300.

Shopper B goes to the store with SALES - buys the same 10 items and spends $330 - but is SO HAPPY because ONE of the items purchased was ON SALE - and look how much was saved!!!!

It is a gimmick for not very smart people - like lotto or casino gambling - and no one ever went broke by underestimating the intelligence of the general public.

(80’s joke - F*ck “the General Public”....... I like “the English Beat”)

44 posted on 05/17/2012 7:18:29 AM PDT by allmendream (Tea Party did not send GOP to DC to negotiate the terms of our surrender to socialism)
[ Post Reply | Private Reply | To 1 | View Replies]

To: allmendream

-—Shoppers - like gamblers - do not usually care how much they spend (lose) over time - so long as they occasionally get the thrill of a low sale price or jackpot. While lower prices every day may make more sense for a shopper’s budget - most hard core shoppers are looking more for a thrill of “saving” money - even if they end up spending more overall.-—

THAT makes sense. TY.


45 posted on 05/17/2012 7:22:08 AM PDT by St_Thomas_Aquinas (hViva Christo Rey!)
[ Post Reply | Private Reply | To 44 | View Replies]

To: St_Thomas_Aquinas
It is amazing how the brain works.

A person sitting at the slot machines steadily losing money doesn't remember the fact that over the last week they spent hours of their time and over $1000 - they remember the ten minutes of absolute joy when the machine gave them $400 of their money back.

They are still out all that time - and $600 - but that thrill of winning that $400 jackpot was, apparently, worth every penny.

Shopper psychology is similar. Doesn't matter that overall you spent more at the store with “sales” for the same items - what matters is that you “SAVED” 50% on one of the items!!!

46 posted on 05/17/2012 7:26:17 AM PDT by allmendream (Tea Party did not send GOP to DC to negotiate the terms of our surrender to socialism)
[ Post Reply | Private Reply | To 45 | View Replies]

To: matginzac

I think it is the same thing. You choose to pay a (sometimes rather steep) annual fee to hold an American Express card. I fail to see how that is less proactive than shopping at a store. Seems like the same thing to me.

And granted, I don’t like a lot of TV shows that JC Penney would target, and I do watch a lot of TV shows that Amex would target, but I saw that stupid Ellen/Amex commercial with the animals at least a hundred times, and I’ve not seen the Ellen/JC Penney commercials at all. How frequently are these ads aired?


47 posted on 05/17/2012 7:53:34 AM PDT by Publius Valerius
[ Post Reply | Private Reply | To 38 | View Replies]

To: allmendream

You summed it up nicely.


48 posted on 05/17/2012 7:58:08 AM PDT by Eric in the Ozarks
[ Post Reply | Private Reply | To 44 | View Replies]

To: Eric in the Ozarks

Thanks!

Gotta call em’ like I see em’. ;)


49 posted on 05/17/2012 8:05:19 AM PDT by allmendream (Tea Party did not send GOP to DC to negotiate the terms of our surrender to socialism)
[ Post Reply | Private Reply | To 48 | View Replies]

To: allmendream

——what matters is that you “SAVED” 50% on one of the items!!!-——

Like I sometimes say to my wife, “the more you buy, the more you save.” Sometimes I like to irritate her for no apparent reason. 8-)


50 posted on 05/17/2012 8:07:22 AM PDT by St_Thomas_Aquinas (hViva Christo Rey!)
[ Post Reply | Private Reply | To 46 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-73 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
General/Chat
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson