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Shares of J.C. Penney (JCP +3.8%) spike higher in late trading after CEO Ron Johnson says the...

Shares of J.C. Penney (JCP +3.8%) spike higher in late trading after CEO Ron Johnson says the retailer's "Shops" are doing 20% better than the rest of the store. Shares were as high as +11% before it became clearer that the retailer's overall sales could still be subdued with the stores concept still a work in progress. Johnson's comments were made at an Open House Tour event for investors and analysts. (webcast)
Comments (11)
  • THR6
    , contributor
    Comments (19) | Send Message
     
    20% better than devastating
    19 Sep 2012, 04:09 PM Reply Like
  • DjarumBlack
    , contributor
    Comments (11) | Send Message
     
    Ron Johnson and his anti employee/customer attitude is driving JCP into the ground. When they finally get rid of him, I would expect a possible recovery.
    19 Sep 2012, 05:13 PM Reply Like
  • MaryLa
    , contributor
    Comments (38) | Send Message
     
    20% is remarkable considering R. Johnson is still feeling his way to understand that pricing was a way of life with JCP customers and the customer is always right! I believe his plan is ahead of schedule and he is not dragging his feet. Cusomers will be slow in returning to JCP but he is doing something right so let us hope he will continue to do so. I wonder when that man sleeps!
    19 Sep 2012, 06:56 PM Reply Like
  • THR6
    , contributor
    Comments (19) | Send Message
     
    Hope...where have I heard that before.
    20 Sep 2012, 09:41 AM Reply Like
  • modanco
    , contributor
    Comments (36) | Send Message
     
    20% better than the rest of the store. Uh...I guess that would still be a loss, huh! Not sure where you got YOUR figures...stock closed at +.10%...that's +.03 cents. Oh boy.
    19 Sep 2012, 07:09 PM Reply Like
  • rdasher
    , contributor
    Comments (47) | Send Message
     
    One thing I can say about JCPenny... I really like the way their newspaper ads look these days. Hopefully it will translate into sales soon.
    19 Sep 2012, 08:59 PM Reply Like
  • johnanexta
    , contributor
    Comments (76) | Send Message
     
    Ron Johnson's comments reminds me of the effect taught at engineering school. In the early part of the last century, they were studying ways to improve productivity at a factory. The management was elated when they installed new lights and saw productivity of the workers jump. Then someone suggested opening the windows and they saw the productivity jump again. What they found out was almost anything they did saw a productivity increase...workers were just reacting to a change. What they also saw was that these effects were temporary. As someone who has run a retail business, this is also true in this sector. Launch or remodel a store and the sales are great early on, it is only 3-4 months down the road when things settle to norm...usually 20-30% below the highs.

     

    Will be curious to see how this plays out, but given the strong competition JCP faces, would side with the shorts.
    19 Sep 2012, 10:22 PM Reply Like
  • Todd Johnson
    , contributor
    Comments (6918) | Send Message
     
    $JCP, $AAPL, $AMZN Ron Johnson needs to understand Amazon will crush JCP's business model. This isn't Apple. A 24.99 pair of pants doesn't sell as well as the iPhone 9. #squashlikeagrape
    20 Sep 2012, 12:43 AM Reply Like
  • alx.botelho
    , contributor
    Comments (64) | Send Message
     
    Do you buy pants online? I prefer to try them on first... And then do you pay DHL to have them delivered at your door? Clothing isnt the same as consumer electronics...
    24 Sep 2012, 05:26 PM Reply Like
  • bakmanone
    , contributor
    Comments (38) | Send Message
     
    If 99% of the advertising focus is on the few shops would you not expect these results. The Home Division, furniture, drapery and other parts of home are in the tank. Furniture is off 50% plus because there is not advertising, no inventory and no extended financing. The merchandise and prices are great. It would seem to me that the #1 focus should be getting people through the doors. The current ad campaign is not accomplishing that simple objective. Everybody thinks the ads are "nice" but are not coming through the doors. Nothing happens until a sale is made.
    20 Sep 2012, 08:15 AM Reply Like
  • mindie
    , contributor
    Comment (1) | Send Message
     
    I just dont understand why they made so many changes at once. Too many people were so happy shopping there before..Sure, I just work at the salon, but remember we hear everything! JCP took our commission for all the "right", or "wrong" reasons, whatever. We now have to work more days to make the same amount we used to. Not only that, but we still have to worry about our "productivity rate", which wouldn't have been so bad if they would't have dramatically lowered their color prices! My question is this, how can they charge the same amount of money for a color for someone that has very short hair, and exactly the same amount for a client that has hair down past their bra strap? Huh?? Really? We were doing just fine before the changes..( Jcp of Roseville MI.) Now we have had over 10 people quit, and other salons in the area even more! I guess they want us to be top notch "Bo-Rics" salon. OK then.. We know we cant change this so all I can do as one of the top talented stylists in our salon is "roll with the changes", and above all no complaining! OK then! Good luck to all of the stylists out there, we know what we can acheive on our own if need be, which is a problem if you love working for JCP..
    20 Sep 2012, 09:28 AM Reply Like
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