Skip to comments.Ex-Apple execs exit JCPenney
Posted on 04/10/2013 4:52:44 PM PDT by jimbo123
Its official: Apple is out of fashion at JCPenney.
Three top proteges of former Penney CEO Ron Johnson all of whom boasted stints at Apple on their resumes exited the retailer today, The Post has learned.
Chief Operating Officer Mike Kramer, Chief Talent Officer Daniel Walker and Chief Creative Officer Mike Fisher kicked off an exodus of high-profile Johnson hires that is expected to continue in the wake of his ouster, sources said.
Kramer who said publicly earlier this year that he hated the culture at Penney resigned as interim CEO Mike Ullman this week began to sharpen his ax, according to a source close to the retailer.
(Excerpt) Read more at nypost.com ...
It was always pretty clear that the key guy at Apple was Jobs and everyone else basically shined his shoes. The JCP board should be fired.
—— It was always pretty clear that the key guy at Apple was Jobs and everyone else basically shined his shoes. ——
The stock price seems to indicate that.
Google looks like Apple’s successor.
Losing their “Chief Creative Officer” likely means that they won’t be quite as “creative” when it comes to marketing to alternative life styles.
But it’s likely too late - unless they make a CLEAN BREAK with their immediate past, which is very unlikely.
Exactly. A chimp with learning disabilities could have been successful at Apple over the past 10 years.
The only other key person at Apple was their industrial designer.
The key industrial design and logistics. The game of cheap labor at Foxconn is over along with the 5-1 margin in phones.
Jobs went through a bunch of these guys. Ultimately, Jobs had the final say. He designed nothing himself and really did not have any design chops, but he had a good feel for what would sell and what wouldn't. He kept prodding these designers into showing him new iterations, pushing them until he was satisfied, toward a final design he himself only fully envisioned at the end of the process. But his particular genius is that he not only finalized these great designs quickly, he got these projects completed before everyone else. He wasn't simply a guy with great aesthetic sense - he was a first-rate project manager. Jobs was sui generis - one of a kind.
Per the WSJ, Johnson never relocated from California and rarely worked more than 3 days a week.
Look out, these clowns will go and start a retail chain to compete with Penney’s, Target, Wal-mart, except in theirs there’ll be no sales, no discounts!
From NY Times:
Mr. Johnson dismissed most of the top executives from Mr. Ullmans reign and brought in his own team, largely from Apple and Abercrombie & Fitch.
But few of the top executives he had hired relocated to Texas, instead working there a few days a week, staying quarantined, as a veteran put it. Penney hands used the acronym AAPLE to refer to the newcomers Apple & Abercrombie Paid to Lose Earnings.
Too late. I’ll never shop there again and I know I am not alone in that regard.
I wonder why Bill Ackman was in love with this guy?
If Johnson had been called in as a turnaround expert, that is another kettle of fish. He was called in to make a transition to the future of retailing in a time when online sales are shifting the landscape.
Who the h$ll knows where it is going to end up.
I for one like the Amazon model. No bricks and mortar...just wire and warehouses. But it is hard to move Penny's into that model without killing its brand.
So how many millions did he get to go away? Need one of those jobs myself one day.
Maybe JCP will be going extinct. Now how did that business plan work for JCP?
Massive hubris rarely works well in corporate settings.
I suspect ole RJ actually believed people were purchasing Jobs’ hardware because of RJ’s brilliant retail strategy.
No parachute for Johnson. And his signing bonus stock grants are underwater.
The American retail middle is dying off in my view.
You’ll have Nordstrom/Saks/Nieman Marcus and Dollar General/WalMart/Family Dollar.
Foostam city for the Johnsons!
That said, the retail business is in a hard place (and times ain't normal).
I can understand their error. Johnson sold them an idea...and they bought it. They are all wiser now. Let's see if they can read the tea leaves and make a good decision this time.
Johnson still has $107 million dollars in Apple stock.
As Bond said to M, "you want me to be half hit man and half monk."
I think that is what's called for, actually.
Will Apple take him back? It’ll be interesting to see where he goes. He’s the guy behind the smashing success of Apple Stores. Only a fool could believe that his formula would translate well into a chain selling socks and underwear.
Maybe Ackman's a flash-in-the-pan just like this guy.
Seems that Penney could leverage the brand ala L.L. Bean with clicks-n-bricks, if they developed a unique value proposition.
Funny, in a way, JCP was actually a predecessor to the Amazon model, as much of their sales in the past was from catalog purchases. I'd venture that prior to the '80's many people only set foot in a Penny's store to pick up or return a catalog order.
JCP also used to have decent quality men’s business suits and shirts at a good price. Now the quality is terrible.
So you hate Apple. How interesting. How original. Don’t tell us more. YAWN!
“I for one like the Amazon model. No bricks and mortar...just wire and warehouses. “
Unfortunately the financial returns on the Amazon model are extremely low. Fourth quarter 2012 (quarter ending Jan 29, 2013) Amazon’s net income was $97 million on sales of $21.3 billion, a return of less than 1/2% of sales. For first quarter 2013 Amazon projects sales of $16.6 billion and earnings of $65 million, again less than 1/2 percent of sales.
For the roughly comparable quarter (Apple’s first quarter 2013 ends December 29), Apple earned $13.1 billion on sales of $54.5 billion. A 24% return on sales.
As a shareholder I prefer the Apple economic model.
Has anyone else noticed that either Family Dollar or Dollar General have been opening a lot of new stores lately?
I stopped by one, I can’t remember which is which, and could not see any real reason for it’s existence except when they are in places too small for Wal-Mart but all the ones I have seen open recently were in towns which already have a Wal-Mart.
I do remember my Mother used to shop at them and she was a very shrewd shopper.
BTW, return on sales is irrelevant to Amazon. Look at (consistent and future) return on investment.
Walmart in miniature.
I stopped at one of them a couple of weeks ago in a city adjacent to where I live. Same store name - Dollar Tree, I think - but different stuff. This one did not have any frozen food but did find a few things made in USA like toothpaste, hand lotion, and some awesome ginger snap cookies made right here in Texas. Also the only place I can find Household Ammonia which I use for cleaning as our local stores no longer carry it. Canned veggies are only $.79 a can and generally Del Monte but just horrible.
Take that to the bank, sir.
When there is no upper-middle class, there can be no Macy’s types that serve that market.
From what I’ve seen they are pretty competitive on price.
Like you say they are in a lot of places - with $4 gas folks can put a value the location.
You can park at the door, and not have to walk a long way inside either. That’s a plus for the elderly, handicapped, obese, etc.
I still refuse to shop at J.C. Doesn't matter if the management changes. I used to shop there, too, once upon a time.
I don't think the Calif legislature can cancel my citizenship
Just today I was leaving our most recently built shopping center, in a new, attractive and stable location.
I noticed several signs advertising "space and pads" available [for additional retail sales.]
I predict those will NEVER be leased so long as Obama's "new normal" business model exists. When entrepeneurs understand that in addition to rent, inventory and advertising, the next business largest expense is supporting Obama's Brave New World, and its army of indolent parasites with their hands out...
...before he can even think about a profit.
Not to mention egregious, capricious tens of thousands of constantly changing, unproductive and expensive regulations that must be paid even if the sales are zero!
Any new businesses here or anywhere else country-wide hasn't a prayer of starting under those conditions. Zero.