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JC Penney ousts President : Exec no 2 takes fall for failed turnaround strategy
Brand Channel ^ | June 18 2012 | Shirley Brady

Posted on 06/20/2012 7:44:30 AM PDT by scottjewell

J. C. Penney Company, Inc. today ousted its JCPenney brand president, Michael Francis, who oversaw the retailer's merchandising and marketing operations, with a terse statement that "We thank Michael for his hard work at jcpenney and wish him the best in his future endeavors." Francis, who was hired last October "at great expense" (as the New York Times retail reporter tweeted, in light of his whopping $12 million signing bonus) from Target is seen as taking the fall for his boss, company CEO Ron Johnson, the former Apple top retailer who oversaw JCP's new brand strategy in January. Now, of course, the heat is on Johnson to clean up a mess that was arguably of his own making. For an executive whose goal is to "simplify" matters internally and externally, it was Johnson who championed the idea of killing coupons and sales in favor of "fair and square pricing" (a reference to its logo), so-called "monthlong value" and "everyday low" pricing and twice-monthly clearance events on every first and third Friday (aka "payday" in America). The brand recently scrapped that strategy and is re-embracing the dreaded s-word — "sale." The mid-price retailer also angered conservatives by showing real-life gay dads and lesbian moms in its Father's Day and Mother's Day catalogs. Now that Francis is out, his former boss — whose hiring was announced a year ago although he didn't assume the top job (and his multi-million dollar signing bonus) until Nov. 1st — "will assume direct responsibility and oversight of the company's marketing and merchandising functions." More about: JCPenney, Retail, Advertising, Pricing, Discounts, Sales, Strategy, Leadership, Michael Francis, Ron Johnson, Target, Politics, LGBT, JCP


TOPICS: Business/Economy; Culture/Society
KEYWORDS: ads; fired; homosexualagenda; jcp; jcpenny; retail
Am posting this because of the paragraph within the article which mentions angering social conservatives with gay ads. This ouster is confirmed by many US publications, but am wondering if the gay agenda aspect was a big part of it, or not? Any ideas?
1 posted on 06/20/2012 7:44:40 AM PDT by scottjewell
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To: scottjewell

The CEO and Board need to be answerable, as well.

The recently-sacked President wasn’t hired in a vacuum.


2 posted on 06/20/2012 7:48:42 AM PDT by Arm_Bears (Journalists first; then lawyers.)
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To: scottjewell
Columnist Says Gay Inclusiveness to Blame for JCPenney's Slowed Sales
http://www.advocate.com/business/2012/06/10/columnist-blames-slowing-sales-jcpenney-gay-inclusiveness

3 posted on 06/20/2012 7:51:41 AM PDT by preacher (Communism has only killed 100 million people: Let's give it another chance!)
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To: preacher

Wow, thanks for that one! :)


4 posted on 06/20/2012 7:52:59 AM PDT by scottjewell (homosexual agenda,)
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To: scottjewell

We used to buy household furnishings from jcp. Then they came out with their anti-family support for homosexual marriage. We have not spent a dime there since. They join Homo Depot, Target, Sears, etc. on our boycott list. It is not difficult to replace them in order to run our home according to our principles.


5 posted on 06/20/2012 7:55:47 AM PDT by txrefugee
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To: scottjewell

JC Penney sales for the quarter off 55% - changing gears won’t fix it now. Those pissed off social conservatives will NEVER shop at JCP again.


6 posted on 06/20/2012 7:56:54 AM PDT by RedhairRedhair (I STILL love my (scab made) Toyota)
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To: RedhairRedhair
I am wondering if there were more angry social conservatives than they bargained for? Of course, there are conflicting reasons given in the Advocate piece: Lewis starts making his case by pointing out that, in observance of Father's Day, "Gay C. Penney" included an image of two real-life gay dads in its most recent catalogue. He also points out that the so-called "One Million Moms" have vocally objected. They also vocally objected to using comedian and talk show host Ellen DeGeneres as the company's spokeswoman because she is a lesbian. And Lewis says the group might have a point. "It's fair to say One Million Moms hardly represents a million moms, and if it did, many of their children would be gay, according to the law of large numbers," he wrote. "It's also fair to say this organization, though often branded as antigay, is expressing a sentiment common among the middlebrow demographic that JCPenney serves." One Million Moms is a subgroup from the antigay American Family Association, which is a "hate group" as deemed by the Southern Poverty Law Center. New CEO Johnson personally went on national television after the group attacked his company for hiring DeGeneres and called keeping her a "no-brainer." LGBT customers launched shopping days in response. And Lewis says more of that's needed for the chain of department stores. "If you support the gay community, please shop JCPenney," he writes, later adding that, "Diversity, inclusion, acceptance for all—these are laudable values. The problem is, well, I have never actually met an openly gay person who openly shops at JCPenney."
7 posted on 06/20/2012 8:01:02 AM PDT by scottjewell (homosexual agenda,)
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To: RedhairRedhair

Especially since the guy responsible for gay catalogues on Mothers Day and Fathers Day is still running the company, and he fired a scapegoat instead.

Sales were down already because of the earlier policy change on coupons and discounts, but it looks as if it was the gay activist nonsense that really killed them.


8 posted on 06/20/2012 8:01:25 AM PDT by Cicero (Marcus Tullius)
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To: scottjewell

Business is down for a number of retailers, but a 55% drop is hard to explain otherwise.


9 posted on 06/20/2012 8:02:40 AM PDT by Huskrrrr ( the will)
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To: Huskrrrr; RedhairRedhair

Well, this is cause for hope, then. I was getting the feeling that the gay agenda had totally won over the retail sector. Maybe not. And maybe social conservatives can push back in other areas as well.


10 posted on 06/20/2012 8:10:18 AM PDT by scottjewell (homosexual agenda,)
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To: RedhairRedhair

Hahaha! The Million Moms group sunk one of the SS Homo battlegroup escort ships. Sweet. I heard about their boycott of JC Penny on AFA radio.


11 posted on 06/20/2012 8:11:16 AM PDT by CaptainKrunch (Freedom is what's fair.)
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To: RedhairRedhair
JC Penney sales for the quarter off 55%

Have you looked at the quality of their clothing lately? I ran in a few months ago to pick a last minute wedding gift. They're always good for a nice quilt or kitchen item. While I was there, I looked at a few items for my grand daughter whose birthday was nearing. I used to like a lot of their clothes, but the stuff I was seeing was just cheap garbage that I could have gotten at a local Dollar General.

12 posted on 06/20/2012 8:12:24 AM PDT by Bearshouse
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To: Huskrrrr

Why do corporations sometimes go out of their way to take sides in these culture war issues?

Why, if they do take sides, why do they tend to support the liberal side?

How many J.C. Penney stores are there in “gay” areas such as The Castro, P. Town, etc.???

I guess it seems to me, that if you are in business, you want to welcome everyone. You would keep in mind that there are divisive social and political issues out there, which have nothing to do with your business.

In other words, you **ss off half or more of people when you take the liberal side of an issue. What the heck is the point of doing that?


13 posted on 06/20/2012 8:13:50 AM PDT by Dilbert San Diego
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To: Huskrrrr

Why do corporations sometimes go out of their way to take sides in these culture war issues?

Why, if they do take sides, why do they tend to support the liberal side?

How many J.C. Penney stores are there in “gay” areas such as The Castro, P. Town, etc.???

I guess it seems to me, that if you are in business, you want to welcome everyone. You would keep in mind that there are divisive social and political issues out there, which have nothing to do with your business.

In other words, you **ss off half or more of people when you take the liberal side of an issue. What the heck is the point of doing that?


14 posted on 06/20/2012 8:13:50 AM PDT by Dilbert San Diego
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To: scottjewell

“hired last October “at great expense”. . .from Target”

I watched those odd Target ads for a year before I realized the company was Target. They would just should the logo - as if we all were supposed to know what that meant.

I’ve notice they are now doing a similar thing with jcpennys. I turn the channel when Ellen appears.


15 posted on 06/20/2012 8:28:43 AM PDT by donna (Mitt quote: ...gay couples raising kids. That's the American way...)
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To: scottjewell
This is the letter I sent them June 4th:

To the J. C. Penney Company:

I was a J.C. Penney associate from 1979 through 1986 (Granada Hills, Canoga Park, and Northridge, CA.) In the 25+ years since then I have remained a loyal customer frequently shopping in J.C. Penney retail stores and online. I would speculate that nearly 2/3 of my casual and business apparel has been purchased through the J. C. Penney Company. While traveling on vacation once I even made a detour to visit Kemmerer, Wyoming just to see where the company that had been such a large part of my life began.

Sadly it would appear that my decades long relationship with J.C.Penney is about to end. I am greatly troubled by the recent departure from the J.C. Penney Company's traditional American roots and the Christian values of founder James Cash Penney.

Suffice it to say there is presently a culture war in this country over traditional families and the very nature of the definition of marriage. For a retail company to choose sides on this ongoing controversy is foolhardy and flies in the face of the moral values that its founder held dear. Indeed, even if the company had been founded by a secular entrepreneur, embracing one side of this debate is an insult to the great majority of the American public and simply a bad business decision.

Regardless of the intent or reasoning of the company's decision to embrace same-sex marriage in its catalogs and advertising, until I am informed or learn otherwise of J.C. Penney returning to the American traditions and respect for its Christian roots, I will no longer be a customer neither through retail stores or purchases online.

Sincerely

16 posted on 06/20/2012 8:36:23 AM PDT by ElkGroveDan (My tagline is in the shop.)
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To: scottjewell
The problem is, well, I have never actually met an openly gay person who openly shops at JCPenney.

That's sort of what I asserted when they made the switch. Their niche is above Kohls/Target and below Macys/Neiman Marcus. They were targeting the wrong demographic.

17 posted on 06/20/2012 8:44:45 AM PDT by Jeff Chandler (<a href="http://originalvelvetrevolution.com" title="Velvet Revolution">Velvet Revolution</a>)
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To: Bearshouse
I used to like a lot of their clothes, but the stuff I was seeing was just cheap garbage that I could have gotten at a local Dollar General.

That's too bad. I used to shop for clothes there. Their suits were superior to Kohls and when they had their half off sales they were competitively priced.

18 posted on 06/20/2012 8:46:50 AM PDT by Jeff Chandler (<a href="http://originalvelvetrevolution.com" title="Velvet Revolution">Velvet Revolution</a>)
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To: scottjewell

The gay agenda was a huge part of their decline here in central Indiana. I no longer visit JCP, and neither do many people I know, all because of Ellen.


19 posted on 06/20/2012 8:49:00 AM PDT by ducttape45
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To: donna
I watched those odd Target ads for a year before I realized the company was Target.

When you can watch an advertisement, especially a clever and amusing advertisement and not know what the product or service is, that means the ad agency is targeting the client, not the client's customers.

20 posted on 06/20/2012 8:49:22 AM PDT by Jeff Chandler (<a href="http://originalvelvetrevolution.com" title="Velvet Revolution">Velvet Revolution</a>)
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To: scottjewell
...it was Johnson who championed the idea of killing coupons and sales in favor of "fair and square pricing" (a reference to its logo), so-called "monthlong value" and "everyday low" pricing and twice-monthly clearance events on every first and third Friday (aka "payday" in America).

Looking down on traditional Americans - while boosting the 2% gay liberal elites - gays who would NEVER stoop to shop at JC Penney was also - shall we say - interesting...

21 posted on 06/20/2012 8:50:07 AM PDT by GOPJ (The 'doting court eunuchs' of the MSM fail to notice...)
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To: scottjewell
Looking down on traditional Americans - while boosting the 2% gay liberal elites - gays who would NEVER stoop to shop at JC Penney was also - shall we say - interesting...

Penney's 'coupon' policy was also elitist. JC Penney had delusions of being an upscale boutique for liberal elites. Now, few of us - few in the middle class - will shop there. We know when we're not welcome.

Wouldn't shop there if it was the last place on earth.

Good luck Penney - good luck getting gays, liberal elites, members of Occupy ( paid $7 an hour to show up) and inner city blacks living on disability and food stamps to keep your store open. You could have had liberals and conservatives, but you couldn't resist being 'oh so superior' to traditional Americans... Must sucks to be you, JC Penney.

22 posted on 06/20/2012 8:58:43 AM PDT by GOPJ (The 'doting court eunuchs' of the MSM fail to notice...)
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To: scottjewell

It is retail 101 to not take sides in politics or religion. This is what makes Capitalism so egalitarian. Everybody’s money spends and if you are selling you must try to please as many potential buyers as possible.


23 posted on 06/20/2012 9:02:04 AM PDT by Anima Mundi (ENVY IS JUST PASSIVE, LAZY GREED)
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To: Jeff Chandler

“that means the ad agency is targeting the client, not the client’s customers. “

Exactly. I can’t tell how many product launches I have been involved with where the corporate wonks sat around the table watching the presentation of their new ad and said, “Awesome! That’s us! Go for it!”, not realizing what they just said was that the advert was an inside information presentation and in no way represented their clients or the product.

One company had an icon in a video ad that only insiders would understand, but the execs all thought it was awesome because the CEO’s wife made a joke at an awards dinner once and that icon represented her joke. That icon in no way was an icon of the company or products and it was a perverted joke in the first place.


24 posted on 06/20/2012 9:06:25 AM PDT by CodeToad (Homosexuals are homophobes. They insist on being called 'gay' instead.)
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To: scottjewell

They are not gay. They are homosexual.


25 posted on 06/20/2012 9:07:50 AM PDT by murron (Proud Mom of a Marine Vet)
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To: scottjewell

One more stumble toward bankruptcy.

We refuse to shop there anymore - the quality is crap and prices far too high. We purchased some kitchen goods at the local JCP and later in the day discovered the exact same item (right down to the part number) for sale in the local Wally World at 1/3 less.

The thing that killed it for the wife was the morass on coupons. Too much hassle, far too many mistakes at the counter when items rang up with bizarre prices or cupons were refused.

JCP will go the way ot K-mart (already gone from here) and Sears - they priced themselves out of the market...and the crappy customer service didn’t help.


26 posted on 06/20/2012 9:10:08 AM PDT by ASOC (What are you doing now that Mexico has become OUR Chechnya?)
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To: scottjewell

Absolutely about the gay agenda.

It is my hope that JC Penney gets made an example of. They made their bed and now they can lie in it, designer sheets and all. When empty buildings with fading letters are everywhere as an example to the world, then the message will be sent, and not a moment before.

If gay people want to be gay, let them keep it in the privacy of their dwelling places, like the rest of the normal people do.

Marriage is an institution established by The Creator to be between one man and one woman. Only The Creator can changed the established meaning of marriage, and that hasn’t happened. Since our founding document, the Declaration of Independence, recognizes The Creator as the author of our inalienable rights, then it seems logical that our nation would stick with that. JC Penney’s did not. They sided with the Marxist against The Creator.

When their bldgs. crumble into dust, the message will be clear. Americans stand on the side of The Creator.

This isn’t a “christian” thing, this is about what is absolutely right and absolutely wrong.

Empty, dusty, faded JC Penney bldgs. standing as monuments across America as a testament to the failed Marxist agenda— now that is hope and change I can believe in!


27 posted on 06/20/2012 9:14:15 AM PDT by daisy mae for the usa
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To: Huskrrrr

——Business is down for a number of retailers, but a 55% drop is hard to explain otherwise.-——

Which retailer is going to run homo ads next. No takers yet?


28 posted on 06/20/2012 9:20:59 AM PDT by St_Thomas_Aquinas (Viva Christo Rey!)
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To: scottjewell
In the CEO class, it is almost totally won over.
JCP’s crash will be blamed on many things, but the lesson will not be learned till a few others hit the rocks. Even then, it make take a generation or two of CEOs to get the message.

At a certain point in executive management, success or failure of the company no longer matters.

29 posted on 06/20/2012 9:21:21 AM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: murron
They are not gay. They are homosexual.

They are SSAD:

Same
Sex
Attraction
Disorder

30 posted on 06/20/2012 9:22:27 AM PDT by Jeff Chandler (<a href="http://originalvelvetrevolution.com" title="Velvet Revolution">Velvet Revolution</a>)
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To: ElkGroveDan
ElkGroveDan

Congratulations! Your letter to JC Penny, of June 4th, says it as clearly and concisely as I've ever heard it stated.

I applaud your common sense and logic. Too bad the marketing people for Penny's just don't get it.

31 posted on 06/20/2012 9:27:18 AM PDT by VideoDoctor
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To: ASOC
JCP will go the way ot K-mart (already gone from here) and Sears

Sears was targeting the same demographic as JC Penneys and Monkey Ward. That demo seams to have split downwards to Kohls/Target/Walmart/Costco and upwards to Macys/Neiman Marcus/Dillards/Nordstroms.Their demographic seems to be dwindling and they may have been doomed anyway. The homoganza has just accelerated their demise.

K-Mart just got out-K-Marted by Wally World.

32 posted on 06/20/2012 9:29:17 AM PDT by Jeff Chandler (<a href="http://originalvelvetrevolution.com" title="Velvet Revolution">Velvet Revolution</a>)
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To: scottjewell

bookmark


33 posted on 06/20/2012 9:39:28 AM PDT by DFG ("Dumb, Dependent, and Democrat is no way to go through life" - Louie Gohmert (R-TX))
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To: ElkGroveDan

That’s a great letter.


34 posted on 06/20/2012 10:01:58 AM PDT by scottjewell (homosexual agenda,)
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To: scottjewell

As an “expert” formerly known as a sales associate at Penneys, I know that most of my colleagues are concerned about the direction the company is going.

What I don’t think a lot of people understand is that this “destruction” of Penneys is totally by design. Ron Johnson has said as much. It is his vision that when everything he wants done is done, the Penneys we have all known will no longer exist.

The intent is to streamline brands and the amount of merchandise and to have within the store a so called “town square” atmosphere.

Rather than one large department store. There will be small “shops” that feature certain labels. They also plan to have “social” areas where one can have a coffee, surf the net on free wi-fi and participate in cooking demos with their new Martha Stewart line.

We are all asked to bear with the changes, be patient and confidently explain to customers that the changes will be great and make “JCP” a shopping experience unlike any other.

It’s all about Ron Johnson.

I have been a loyal Penneys customer for all of my life and was happy when I was hired there after being out of the workforce for over 20 years, but that has all changed. Now, I am just biding my time and don’t know if I will be around to see the changes come to fruition.

It’s hard to see such an integral part of Americana go by the way side.


35 posted on 06/20/2012 10:04:22 AM PDT by Jvette
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To: All
What!

You mean the strategy of pandering to sodomites has failed? How is that possible?

We are lied to daily that the sodomites and their supporters are the ones with all the money, numbers and power in America these days.

Schadenfreude!

But sorry for the innocent employees who will be swept out by this calculated blunder.

36 posted on 06/20/2012 10:40:26 AM PDT by Prov1322 (Enjoy my wife's incredible artwork at www.watercolorARTwork.com! (This space no longer for rent))
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To: Jvette
Rather than one large department store. There will be small “shops” that feature certain labels.

That's the way Saks and Neiman Marcus are set up now - problem is, nobody has demonstrated that setting up a "mall-within-a-mall" will be an effective way to market to JC Penney customers, most of whom are conditioned not to spend unless they see "70% OFF!" signs in big red letters.

I expect Ron Johnson recognizes the American lower middle class is effectively dead, killed off by Obamanomics, and he knows JCP's days of being an effective competitor based on that demographic are over. Most people are moving down to Wal-Mart - and a few up to Nordstrom - leaving few consumers in JC Penney's traditional target market. To address this demographic shift, he wants to turn as much inventory management/warehousing/operations responsibility over to the "stores within a store" as he can, while making the new JCP brand attractive to Macy's level shoppers with more disposable income.

But I don't think he can complete such a huge transformation quickly enough. There is a "stigma" to shopping at JC Penney, and people who think of themselves as high-end consumers just aren't likely to ever go there. People who can no longer afford Macy's are likely to go to Kohl's, Wal-Mart, or Goodwill instead, depending on how far their fortunes have fallen.

37 posted on 06/20/2012 10:59:42 AM PDT by Mr. Jeeves (CTRL-GALT-DELETE)
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To: Jeff Chandler
That “demographic” doesn't have the money they used to have in disposable income.

Personal wealth is down 40% in the last couple of years.

SO, did JCP and K-mart die from lack in the economy or economic suicide via gay-friendly ads/crummy customer service/high prices/etc/etc?

38 posted on 06/20/2012 11:01:55 AM PDT by ASOC (What are you doing now that Mexico has become OUR Chechnya?)
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To: scottjewell

James Cash Penny is rolling over in his GRAVE, because of what JCP is now, which is none of his VALUES!!


39 posted on 06/20/2012 11:31:29 AM PDT by ExCTCitizen (If we stay home in November '12, don't blame 0 for tearing up the CONSTITUTION!!)
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To: RedhairRedhair
JC Penney sales for the quarter off 55% - changing gears won’t fix it now. Those pissed off social conservatives will NEVER shop at JCP again.

Regaining customer confidence requires a vocal and notable mea culpa by the offending element(s). Heads can roll, but someone has to step up and take the heat and articulate a new course of action.

I don't see this happening. That would be "too discriminatory" in light of the diversity/perversity movement.

40 posted on 06/20/2012 1:53:56 PM PDT by nonsporting
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To: scottjewell

Failed turnaround strategy? More like a failed reacharound strategy.


41 posted on 06/20/2012 2:01:51 PM PDT by Rastus
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To: RedhairRedhair
Penney sales for the quarter off 55%

I'd like a link to that data.

I found this in the article:

Total sales in the first quarter fell 20% while same-store sales declined 19%.

42 posted on 06/20/2012 2:07:09 PM PDT by nascarnation
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To: Mr. Jeeves

That seems a pretty good analysis of the situation.

But, I have to add that we have already seen a change in our clientele. People who used to shop once a week or a couple times a month are seldom seen anymore.

The new clients we see are not enough to overcome their loss.

It is going to be an interesting couple of years. I don’t know if I will stay long enough to see all the changes, but as long as the paycheck clears, I’m good for now.


43 posted on 06/21/2012 2:35:36 PM PDT by Jvette
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To: nascarnation

I would not go into JCPenny to buy a 50 cent soda(if they sold them). I was ready to go to JC penny just before they decided to go “gay with Ellen”. I had about $300 to spend on myself. I was looking forward to getting some new clothes when Ellen and all thAT OTHER STUFF CAME ON THE NEWS. I immediately called the store I was going to in Aventura Mall in Miami. I told the lady to tell managment that I would not spend a penny there and that Ellen could not tell me how to dress like a woman. I told her if they are the gay store I wont be seen in there. I am so happy they are doing poorly. I will never support them-not ever.


44 posted on 07/30/2012 7:41:16 PM PDT by Is this really America
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