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.
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.
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.
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.
Meh, just threw away not one but two fancy, schmancy mailers from JCP....
Not interested anymore.
I agree. Why insure 2 bad years in a row?
Doesn’t make sense.
Need to have Degenerate and her “wife” on speed dial....
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.
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.
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.
I wonder when Kohls will fall apart. Ive 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.
ah........Gay Cee Penney’s.
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 -—
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.
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.
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.
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?
Indoor malls are dying, period. They’ve pretty much become hang out places for gangs....haven’t been to one in years.
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.
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.
He needs to fire himself if he was in charge last year. Horrible management decisions from A to Z.
It sounds like they already got ahold of Albert "Chainsaw Al" Dunlap.
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.
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 --
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.
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.
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.