JC Penney ousts President : Exec no 2 takes fall for failed turnaround strategy

Brand Channel ^ | June 18 2012 | Shirley Brady

[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

[Rastus]

Failed turnaround strategy? More like a failed reacharound strategy.

[nascarnation]

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%.

[Jvette]

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.

[Is this really America]

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.