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,”

[dfwgator]

Indoor malls are dying, period. They’ve pretty much become hang out places for gangs....haven’t been to one in years.

[antceecee]

We have shopped at JCP for years. Always bought Florsheim shoes, Haggar shirts and slacks, JCP mens undershirts and boxers for Hubby. I liked their women’s hosiery and they use to have a nice selection of women’s career clothing. Florsheim shoes still there and limited selection of Haggar. Women’s hosiery discontinued (that was my main reason to shop there)and women’s clothing selection is not appealing to me. Their slick advertising brochure campaigns must be costing them a fortune. Makes them look like a Target or GAP wannabe. I don’t care much more for Kohl’s or Macy’s either, but am finding better selection at these stores.

[old and tired]

I honestly don't think the gay agenda has anything to do with their downward spiral. We don't pay a lot of attention to consumer boycotts and pretty much go where price and convenience direct. And so, with one exception we haven't been to JCP (or most mall stores) in many, many years, although I suspect we are JCP's target demographic.

In recent years when we've wanted something new we just pick it up with the groceries. BJ's, Costco, Target, and Walmart pretty much keep us clothed. Every couple of years, my wife will get something really "upscale", but even that is most likely done online.

Here's the one exception where my wife was actually in JCP. Two weeks before Christmas this year and was going to pick up two dressy sweaters for my grandsons for a wake they were to attend that evening: She was in the area of the mall and thought she would run into JCP and pick up some reasonably priced little boy sweaters. She went to the boys' department and couldn't find them so she asked the sales associate. The lady looked stricken and told her they hadn't gotten *ANY* sweaters in for little boys (ages 5 and 7). What??? No wonder they're going out of business. She ended up going to Target on her way home.

[freeangel]

He needs to fire himself if he was in charge last year. Horrible management decisions from A to Z.

[Lancey Howard]

Maybe they should bring in a good retail turnaround specialist like Mike Ullman?

It sounds like they already got ahold of Albert "Chainsaw Al" Dunlap.

[longtermmemmory]

why, the homosexuals got the capitulation they wanted AND they can blame pro-family groups for victimizing a capitulating retailer.

The have the debate and the victory.

[imardmd1]

As a country boy, raised in small villages, our two or three treks to the great city department stores (pre-Christmas, pre-Easter, and just before going back to school in the fall) were exciting special trips to get new outfits.

Later on, I always tried to save up money so my children could have the same experiences, where they could select their own clothes. Just not the same, now --

[Deathtomarxists]

Here is an interesting take:
my mom (age 74) has been a loyal Penney’s shopper for the last 20 years. She has really enjoyed getting their coupons in the mail (and now the internet), receiving candy bars w/coupons, all their “sales”, clearances, etc. For her it was quite an adventure. She would spend hours in there digging around. In the last few years she had been able to save up gift certificates ($5, $10, etc) they gave out as rewards and redeem them for a single big purchase. She did this for a sofa. All in all she was indeed getting a very good value for the money she spent on purchases - plus the entertainment value.

But she took no notice of the gay thing, even after all us men in her family told her repeatedly about it. The adventure of couponing and apparent big savings trumped the culture. But when they discontinued the sales/coupons about the same time then she noticed. And started going to a regional department store called Belks. She still goes to Penney’s but its not the same. I was there with her this week and the store had very little merchandise on the floor, the walls had been painted bright colors and it was airy and open - and spooky. Not at all like a Penney’s. And there were no customers. For our family Penney’s had been the place my mother would go for home furnishings, draperies, linens, bath room items, and clothing - pretty much everything. But not anymore.

In the end, she has lost her fascination with Penney’s. If they do bring the sales and coupons back perhaps that will change. But in the end, for her at least, the gay thing was not an issue. Interestingly enough, it was for all the men in the family. So maybe it is true that women, in general, are more liberal than men. Or perhaps it is some natural inclination of men to be protectors of the family.

[wbill]

Here is an interesting take

Yep, it is interesting. For me, it was likely more the money, than the gay thing. But both of them factored into my decision - as in, "Man, I don't approve of their sales tactics, so I don't want to shop there. And the pricing stinks now, too, so why bother?"

I figure that JCP couldn't continue to sell stuff at a loss....for instance a couple of years ago, I replaced all of the pillows in our house with high end ones (Sealy? They weren't the cheapies, at any rate) from JCP.

After the sale, coupons, discounts AND a doorbuster special, I think it worked out to $3-4 a pillow - about 10c on the dollar. Sez me, they can't be making money at that rate. So, they likely needed to rein things in a little.

However, there's an enormous difference between, "Let's make sure that we're not undercharging", and "Let's turn things upside down completely." Will they survive? I doubt it...but then there's always plenty of turnover in retail (see Circuit City, Linens and Things, Ames', Zayre's, Woolworth's, etc etc etc). The disappearing middle class will just hasten the shakeout.

[Pigsley]

Dang...you are smarter than me. I got a few of those cards in the mail and just gave them to a friend who used them. Makes sense to buy decent stuff with a $10 discount.