Penney’s Johnson seen slashing jobs (JC Penney's meltdown continues...)

NY Post ^ | 2/6/13 | JAMES COVERT

[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. Valentine’s Day Massacre,” the former Apple exec plans this month to fire at least 10 percent of the remaining 3,000 employees at the retailer’s 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 company’s 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 they’re running low on cash,”

[wbill]

JCP everyday low price was a true bargain

It's been awhile since I have been in in there. I used to go all the time.

However, I DID shop a couple of times immediately after all these changes started rolling out. I found the prices to be higher, and substantially in some cases. (I like their St. Johns Bay shirts, and prices for them literally doubled.)

I've not been back in a year or more, though. Prices may have changed.

[oh8eleven]

I see their prices are very good ...
Shortly after they announced the new pricing policy, I stopped into my local JCP and found the prices so low I thought I was being scammed - "Must have brought in really cheap krap from China."
When I realized the merchandise was the same it had always been, I thought American consumers would flood JCP across the country. Unfortunately for JCP ... not so much.

[Cheerio]

“They wanted to throw the severance costs into this year because last year was already so bad,” according to one former exec.

This statement makes no sense. Most corporations - when they have a bad year - throw in all the expenses they can find of a non-recurring nature - to set the stage for a comeback and profitable year following.

[chopperman]

I have historically obtained my underwear and Oxford shirts at Penneys. My purchases were based not on price but on the quality they used to have. Sadly, a recent purchase of a shirt revealed unraveling at the cuffs. The quality of the underwear has gone downhill for some time now.

[oh8eleven]

I DID shop a couple of times immediately after all these changes started rolling out. I found the prices to be higher
Can't argue with what you say you saw, but it doesn't make much sense to announce new lower prices ... then raise them.
Perhaps the example you gave (St. Johns Bay shirts) had been used as a loss leader.

[T-Bird45]

Towels & bath accessories = Bed, Bath & Beyond because it’s easier to get into and out of (hate malls) while having a better selection. Kohl’s also fits that description.

[matginzac]

Meh, just threw away not one but two fancy, schmancy mailers from JCP....
Not interested anymore.

[super7man]

I agree. Why insure 2 bad years in a row?

Doesn’t make sense.

[matginzac]

Yep, ...
Need to have Degenerate and her “wife” on speed dial....

[Pigsley]

Yes....I agree with most you posted. These “old time” large retailers are all going to go away. If you think about it, this began with that old company Montgomery Ward in the early 70’s.

Like the buggy whip, I guess.

I wonder when Kohl’s will fall apart. I’ve never understood that store.

[Rational Thought]

It's more a case of putting way too much stock in the concept of one individual, Ron Johnson.

While you're correct that retail is already a tough market, this guy has basically destroyed the customer base this company has acquired over the years. The elimination of the coupon, the ads and (keeping in mind that a number of JCPenney stores are part of the community) the past treatment and firings of some long time employees have been the main causes.

This entire hiring (of Johnson) was dumb from the start. They took a guy who was successful in expanding new stores (Target) and opening new retail stores (Apple). They allowed him complete control to implement changes which were never proven successful. No where on his resume does he have any experience in improving an existing retailer with 1100 stores.

I'm not one to complain about anyone’s compensation, but I find it ironic that for a company that is now cash strapped, Johnson received over $53 Million in compensation in 2011.....I can't find what his numbers were for last year.

[Buckeye McFrog]

Kohl’s store up the road appears to be busier than ever.
Getting hard to find help in there however. The people working there all fret that their hours have been cut as the company tries to avoid Obamacare.

Herb Kohl was a Democrat, and I’m fairly certain he voted Yea on the Affordable Care Act.

Irony: The Mark of Quality Literature.

[Grams A]

I wonder when Kohl’s will fall apart. I’ve never understood that store.”

The only reason I shop at Kohl’s - about once a month I get a coupon in the mail for $10 off any purchase. They have some okay tee shirts that are $8.00 or shorts for $10-$12 each so I use that to build up my stock at little cost to me. They must generate enough income from people who spend more than that because they keep doing it. Our local one is a rather strange store though.

[PhiloBedo]

ah........Gay Cee Penney’s.

[imardmd1]

The last 2 times I was at Penney’s (within the lat three weeks) there were so few customers that they really didn’t need the employees that were standing around. Yet when I needed some help finding the articles I wanted, I had to go and pester a clerk to get help. But what I wanted (white boxer undershorts) they were out of. What was left on the shelf was shopworn, and they didn’t know when or if more would be coming in. I’d been buying these for years. Foo -—

[wbill]

had been used as a loss leader.

That's a possibility, they're a store brand. Per the posted article, they're "gradually going away"...too bad, I may need to find a new favorite shirt. :-)

The Socks, underwear and slacks that I usually bought there were name brands, though. And the prices on them had gone up - gone up radically, without the usual JCP coupons - as well.

Maybe it was symptomatic of my local store. Doesn't matter, Target and Kohls have been glad to get my business.

[NEMDF]

I disagree. I think their “new” sales model of “everyday low prices/no sales” combined with their gay family agenda to create the downward spiral. The last time I shopped there, which was probably going on 2 years ago, I was looking for clearance racks. There were none, nothing really marked down, just “everyday prices”. I don’t shop very much at all, and when I do, unless going for one specific item, I am going to look at the clearance stuff first.

[MacNaughton]

7 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.

Macy's Goes On the Down Low, Hooks Up With Obama Gay Group for 'Election Year' Campaign
Posted on Sunday, June 03, 2012 12:01:59 AM by kristinn

While conservative activists have focused on the promotion of gay marriage by store chains J.C. Penny and Target, Macy's has gone under the culture radar in its partnership with the Obama-allied homosexual group, the Human Rights Campaign.

[Count of Monte Fisto]

These “old time” large retailers are all going to go away. If you think about it, this began with that old company Montgomery Ward in the early 70’s. Like the buggy whip, I guess.

The old large retailers had costumers that had well paying jobs. Those jobs didn't disappear. They were shipped to Red China. Do you think retailers in China are hurting?

[ExTxMarine]

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.

That pretty much sums up the current middle-class in America. I am pretty well ensconced in the middle-class as well, I am having to experience the same cost-cutting measures, etc... In America, the middle-class shouldn't HAVE TO KNOW which restaurants offer free or low-price meals for children after 4PM, etc... This is a STAPLE in America today and that is a sad state of affairs.

This reminds me of most of the lower-middle-class/upper-poor-class Americans in the late 1970's! I remember my family sitting around the TV putting together power-strips and other gadgets which were shipped to us as parts and returned as a completed product for PENNYS! This money was not an "option" it was needed just to keep the lights and gas on! Obama and the liberals consider this to be PROGRESS? They think THIS is a successful economic recovery? Jimmy Carter's economic prowess on full display!