Skip to comments.Penney’s Johnson seen slashing jobs (JC Penney's meltdown continues...)
Posted on 02/06/2013 5:32:39 AM PST by jimbo123
JCPenney CEO Ron Johnson is getting ready to break more hearts at headquarters a few hundred more.
In what some Penney insiders are calling the St. Valentines Day Massacre, the former Apple exec plans this month to fire at least 10 percent of the remaining 3,000 employees at the retailers home offices in Plano, Texas, sources told The Post.
While the bloodbath was originally targeted for last month, sources said Johnson opted to delay it until after the flailing companys fiscal year ended last week.
They wanted to throw the severance costs into this year because last year was already so bad, according to one former exec. He noted that fourth-quarter sales scheduled to be released on Feb. 27 are estimated to have dropped upward of 30 percent amid heavy holiday markdowns.
The real reason is that theyre running low on cash,
(Excerpt) Read more at nypost.com ...
Saw a JCP ad last night. Not a fag in sight. Too late I’m afraid.
So, was it their pro-gay stance, or the fact that they horrifically screwed up their entire sales model? Or Both?
Johnson gets a lot of flak these days - much of it deserved - but most retailers are dealing with the End of the Consumer Era with equal ineptness. Too many products chasing too few dollars, and the shakeout is just beginning. Many blame online sales, and while Amazon has hurt traditional retailers a great deal in the short run they are also staring straight ahead at the same giant contraction bearing down on them.
Going the way of the Penney.........
JC Penney has an excellent sales model. And my past experience with them is that their people are top-notch.
The gay thing screwed them.
Seeing posters of two lovey-dovey daddies last Fathers’ Day sent sensible people out of Penny’s and over to Kohls and Macy’s.
Kohl’s and Macy’s may have the same political compass, but they aren’t putting it in their advertising where everyone can see it.
Maybe they should bring in a good retail turnaround specialist like Mike Ullman? Oh wait...
When your marketing plan targets 3% (or less) of the population, success is unlikely.
>The real reason is that theyre running low on cash,
Perhaps the tiny percent of the “two daddy” families can save them or maybe a new focus on closet furnishings?
What I find interesting, is that we didn’t see this so-called “gay friendly” ads in Missouri. As a marketing teacher, it is my opinion that what really took them down was the complete removal of those pesky coupons that drew customers into the stores. Even thought the EDLP model may have netted better prices.
In the retail biz no one is more vulnerable to layoffs than a home office employee.
Out in the stores at a minimum you need someone to show up with a key and open the doors every day. By contrast lots of administrative types are expendable.
The collapse of the Boy Scouts will be much much quicker if they go wrong.
Buh-bye JC Penney
Think about it. In the last decade there has been an absolute dearth of development, just teeny incremental changes. No real explosive idea.
It seems like since 9/11 we've focused on war and the economy and society has either just maintained or declined.
Since 2008 Obama has gone out of his way to diminish America, both domestically and abroad. He has been fantastically successful.
We now have trillions in added debt with record amounts of people subsisting on government payouts. Real employment is about 12% with millions out of the workforce and on the government dole. Inflation, while yet tame, is real. Gas prices have now risen nearly $0.50 per gallon in the last two weeks alone. Taxes were just increased on all Americans in January. Wages are declining. Middle class Americans are struggling mightily to make ends meet.
Amidst this background there ARE going to be shake outs as you mention. There is nothing new being created at the retail level. Middle class consumers are shrinking and those left are strapped. Those on the government dole make their monthly trek to WalMart for staples.
What I find amazing is that it's just JC Penney that is struggling. I think the dam will break in the not so distant future and we will see a lot of businesses, unfortunately, going bust.
Another victim of Homo-Worship.
I went to Penney’s recently to shop for towels and bath accessories. I was dismayed at the lack of choice. There were several types of towels but all in the same color scheme which was limited compared to past selections. Went to Dillards and Kohl’s and it was a color wheel compared to Penney’s. The clothing displays look more appealing but the whole store has an empty feeling that makes it look like they are going out. I hope not. It is such a change and I don’t think their gay friendly ads reached their demographic in a positive way. They do seem to be floundering.
Speaking for myself, I'm (currently) entrenched solidly in the middle class. If you had told me 20 years ago what my salary would be today, I'd have replied, "Well, probably. I have a college degree, I'm a hard worker, etc etc etc".
However, if you had told me 20 years ago what my salary would be today AND that I'd be clipping coupons, skipping vacations and cutting every corner that I can find just to stay afloat..... I'd have said that you were crazy.
You are correct about the need for a stronger campaign to explain the new sales plan. What I remember was advertising that alluded to the change but didn’t hit home the advantage. Plus that coupon in the mail was like an invitation to come in and it kept Penney’s on our mind. I see their prices are very good and they have good working woman clothes.
Oh gosh. Nailed it.