J.C. Penney (JCP +5.2%) tells CNBC the layoffs at the company won't be as large as earlier...


J.C. Penney (JCP +5.2%) tells CNBC the layoffs at the company won't be as large as earlier reports claimed. Though employees themselves are saying over 300 were axed yesterday at headquarters, it's a move the company calls a "minimal team member reductions across multiple departments." Shares of JCP are reacting favorably, clearing $22 for the first time of the year.
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Comments (22)
  • KnowsALot
    , contributor
    Comments (34) | Send Message
     
    QUESTION: When is Mr. Ron Johnson going to be help responsible for doing what he did to DESTROY a once proud company?
    22 Feb 2013, 11:54 AM Reply Like
  • beido94
    , contributor
    Comments (6) | Send Message
     
    These gains in the stock price, in the last few days, will evaporate quickly, next week, when they report over a 30% loss in sales for the 4th qtr.
    22 Feb 2013, 11:54 AM Reply Like
  • Billybob207
    , contributor
    Comments (115) | Send Message
     
    If you focus on the past, you can't see the future. Last years comps are ancient history. The "once proud company" was loaded with stodgy, dull merchandise and was headed for the dustbin of retail history. The only retailers that were generally viewed as worse are Kmart and Sears.

     

    Johnson has guts, vision and the backing of important investors (about 75% of the company) who have good business savvy. Forward ho, Ron.

     

    JCP may actually breathe some life back into enclosed malls...a place many have abandoned.
    22 Feb 2013, 12:22 PM Reply Like
  • retailgirl
    , contributor
    Comments (123) | Send Message
     
    Oh hush.
    22 Feb 2013, 02:39 PM Reply Like
  • karmike
    , contributor
    Comments (190) | Send Message
     
    There is nothing going forward that will save this company. Ron Johnson has killed it dead and his "new" shops are not getting it done.
    22 Feb 2013, 05:20 PM Reply Like
  • KnowsALot
    , contributor
    Comments (34) | Send Message
     
    BillyBob207... interesting take... but wrong.
    Ron is using a similar business model for JCP that he implemented for Apple. How could you possibly compare a store with 6 major SKU's with a Dept Store that has 1,000's... and expect the same result?
    How can you compare unique merchandise where people literally stood in line for to a dept store where everyone in the mall has the same?
    How can suppliers like "Joe Fresh" be a savior for anything?
    Why was his "NEVER ON SALE" now pushed off to the side? (Answer- because he finally realized he was WRONG.)
    They may have positive COMPS starting this year- but unless they are up some 25%+, they are only built upon -25% drops and only indicative of the fact they have a long way to go.
    Sorry BillyBob... Mr. Johnson is guilty of reading & believing his own press for it was Steve Jobs that was the true leader & innovator at Apple- not him... and JCP and their once proud (now former) associates are now paying the price.
    22 Feb 2013, 02:33 PM Reply Like
  • GeorgeMason
    , contributor
    Comments (129) | Send Message
     
    A narcissist will never admit to failure and they accept advice from no one. His concept appeals to only a small minority and will not succeed. Macys and Kohls may be doing poorly but Penneys sales have been abysmal.
    22 Feb 2013, 04:46 PM Reply Like
  • karmike
    , contributor
    Comments (190) | Send Message
     
    Correct on all points KnowsALot. Those who post here that know retail know that he will be hard pressed just to get back to where they were before he began his Keystone Cops retail experiment. He is further cutting their throat by eliminating anybody in this company who actually knew something about buying and SKU management. If he stumbles upon a winning product, it will run out of wanted sku's and die....you can see it already!
    22 Feb 2013, 05:25 PM Reply Like
  • Billybob207
    , contributor
    Comments (115) | Send Message
     
    Apple...shmapple.. I don't even like Apple products. They are overpriced. Johnson was also a dress shirt buyer.

     

    Ron knows the single most important truth about retail merchandising: It is the product and the nature of the selection that counts. He is bringing the company into the 21st century.

     

    As to the comps, when you re-invent a retail concept, it takes time. But watch the stock price, once there is a consistently positive number...even in the single digits.

     

    As to the wisdom of his direction, I guess it is indeed just a matter of opinion. For those who loved the old J C Penney, there is nothing that can change that point of view. Sorry, it's gone. And for your shopping pleasure, there is Kmart, Sears, Walmart...or Dollar Stores.

     

    From an investors point of view, anything Wellington Management takes a position in catches my immediate attention. Read Morningstar for more.
    23 Feb 2013, 09:30 AM Reply Like
  • GeorgeMason
    , contributor
    Comments (129) | Send Message
     
    The price goes up because people have lost their livelihood? What kind of logic is that?
    22 Feb 2013, 04:39 PM Reply Like
  • MUGUGIPAN
    , contributor
    Comments (6) | Send Message
     
    When will list of stores slated for Closing be available ?????
    23 Feb 2013, 04:38 AM Reply Like
  • MUGUGIPAN
    , contributor
    Comments (6) | Send Message
     
    Ron Johnson was given 56 million up front a private plane along with a hefty salary . He should return the plane and move to Plano Texas . He has destroyed a once powerhouse in the retail market in just less then two years . Employees get less then full time hours so no benefits are available . Dress code is now casual and store managers wear denim .
    23 Feb 2013, 04:38 AM Reply Like
  • retailgirl
    , contributor
    Comments (123) | Send Message
     
    Oh I know....ain't it great? Sorry, I'm old school and I don't wear denim or tennis shoes. I used to be commission, dressed professionally (wore flats not heels) and still do. That is not changing unless they force me to wear blue jeans to work. Disgusting.

     

    They all look like Wal Mart employees. Most of the young ones look as though they just woke up---clothes, hair, attitude.....and they work like it too.

     

    I give up some days.

     

    The older employee shows up, knows how to sell product and has knowledge the young ones don't. To work with them at times is like pulling your own teeth. WE, the senior employee are the ones who can pull JCPenney out of this slump if we have a little help from management in Plano. God forbid we interrupt a golf game or lunch at the Ritz Carlton in Dallas to address SAVING OUR COMPANY!!! We need hours, we need product, we need fast computers, etc.

     

    Yet we are under assault. Our hours are cut. We get more hours when one of the young one has too much beer the night before and calls off work.

     

    JCP will get out of this experiment what they put into it. You must have quality and knowledgeable employees to pull it off.
    26 Feb 2013, 09:23 AM Reply Like
  • gmom3
    , contributor
    Comments (139) | Send Message
     
    retailgirl: you speak a lot of truths.I loved the too much beer comment.

     

    Has your store started its remodel this week? I thought I had read somewhere that you had written earlier that your store was still not showing signs of that. Ours started this week with all the temp walls, dumpsters, machines, the construction workers coming in when the store closes at night. The Home area in our store is going to be a LOT larger in square footage then the previous space allowed. From my understanding all the stores should be in remodelling mode by now for the Home area. Last night the team members were still emptying fixtures and moving product over to the designated area to be used until all this done. That is when the product will be out. Not much now, is there?

     

    You are so right about jcp having to have quality and knowledgeable employees.
    26 Feb 2013, 09:50 AM Reply Like
  • gmom3
    , contributor
    Comments (139) | Send Message
     
    Mugugipan: Part time associates DO have the option to get benefits. I have had medical for spouse and myself, dental for both, visual for both(in the past) and life insurance for both for several years now. I have always worked part time and as long as one makes enough to cover the payments each month, which I have never had trouble doing even when I worked much fewer hours. There are several companies that offer this to part time employees. I just wanted to clear up that misconception that seems to float around about losing benefits when one goes part time.

     

    Of course, full time employees qualify for sometimes better coverage. I work with a few that need the 35 hours to qualify for that due to a spouse's terminal illness that is being treated. Even with the cut hours this month and last, they have found the hours for those employees to be able to continue the insurance coverage so desparately needed. I am aware of the very many employees whose hours have been cut from full time to part time the past few years. It escalated last year for all the reasons we are aware of.

     

    I do know that hours were cut across the board since the holidays but that has always been the case in January and February. I was surprised to see my first week of March schedule that they added another day to my usual hours. When I asked if someone in our area was going to be gone that week, I was told that "they" were given more hours in the pot to distribute that month. From talking to others, some of us got even more hours then we wanted, and some got the same. The ones that got the same were ones who "call in" or other "little" things that count towards one's productivity.

     

    I expect the dress code to evolve over time. I do know that there is no way I plan on wearing heels or dress shoes when I do my job as the shoes we wear now allow us to travel those multiple miles per shift doing our job. When I have the four hour shifts, that isn't too bad, but the 7-8 hour shifts are murder on one's feet.

     

    Thanks for you concerns though for the employees. They have been through a lot recently and any constructive criticisms are appreciated.
    23 Feb 2013, 07:25 AM Reply Like
  • karenjhughes
    , contributor
    Comments (6) | Send Message
     
    Your store must be the polar opposite of mine. MY store cut hours and told us to deal with it. MY store gave no reason for the hour cut. MY store told us if we didn't like it, too bad, at least we had a job! MY store lost valuable employees because of the hour cut...therefore they couldn't pay for their benefits. Dear RJ grandfathered in our bennies but then put everyone on part-time pay. Bennies eat up a paycheck if you don't work full-time to cover the cost. Bottom line a mass loss of employees. RJ has no idea of how real people live. And you sound like a drone. Get your blinders off, it's only a matter of time before stuff hits the fan for you!
    26 Feb 2013, 05:27 AM Reply Like
  • retailgirl
    , contributor
    Comments (123) | Send Message
     
    Okay lady....no way. You work part time and buy all those benefits for you AND a spouse? You don't take home much pay do you? There is no way unless they're paying you $30 an hour and we both know that ain't happening at JCPenneys....and that part time medical insurance is nearly worthless if you have a trip to the hospital. Geeeze. What does it pay in Rx....$300 per year? Hospital is $3000 TOTAL. That's it! I kept that part time insurance for the 1st year I worked for JCPenney's and it was virtually worthless and cost me $75 a month just for me. I think they only offer it so they can tell the public that they OFFER the part time help insurance.

     

    Your store sounds like a make believe store. AH....like Alice in Wonderland or something....ice cream, rainbow, lollipops....AH!

     

    In the real world things are a little more desperate and depressing.
    26 Feb 2013, 09:13 AM Reply Like
  • gmom3
    , contributor
    Comments (139) | Send Message
     
    karen: if they are going to get rid of me, they would have done it already. I have always worked part time. I went from one night a week last year to 20-25 hours a week since mid year last year. Then like I said they added another shift (I didn't ask for it so I was surprised) to my regular schedule in March. I could work even more if I ever said yes when the store calls when someone calls in not to work. This is NOT the case for everyone at our particular store. There are many who are not getting many hours. One has to think why that is the case for some and not for others. There is a "pool" of hours the schedulers have to distribute for each neighborhood each week. They have to figure out who is going to get X amount of hours from that pool.

     

    From my many years of working at jcp, I have found that the majority of the employees have been part time to supplement their "main" job. Many others are students either high school but mainly college. Part time works for a lot of people if they don't consider jcp their full time job and their only means of employment.
    When I work a four or five hour shift doing all the walking and moving about that I do and is expected of us, I am much fresher then I am by the end of an 8 hour shift. Since the move is to be getting away from standing behind a register all day. it makes sense to make the shifts shorter for employees to handle the very active work expected. The only ones I see who seem able to handle those longer shifts are those team leaders and members who seem to have unlimited energy.

     

    Just from reading your post, I get a very good feeling about what kind of "culture" your store has. I am thankful that our team leaders are not so rude in their interactions. I do not get that the team members who are not getting the hours they would like have been spoken to like what you say your leaders do. They are definitely disappointed and not sure what their future with the company is, but they do not say openly any angry about being told things like "deal with it".

     

    I am sure one reason has been to cut expenses by turning the more expensive employees into part timers. However, not every employee is seeing those cuts.There are many part timers who are seeing those cuts in hours at the same store. At the present time, I am not one of those seeing the cuts that others are. Those full timers who had seen the cuts to part time hours left last year. There are only a few full timers left in our store. These are team members. I work with two of them in my neighborhood and the one next to me. The others are leaders.
    26 Feb 2013, 07:51 AM Reply Like
  • retailgirl
    , contributor
    Comments (123) | Send Message
     
    Okay you went from one night a week last year.....how'd you cover all those benefits you say you have for the hubby and yourself? Now way.

     

    You said for years you've had medical, dental, life, vision,..........on one day a week last year? Can I ask how much an hour Ron pays you?

     

    Sorry gmom but you write like a "plant". If you cannot be honest..... stay off the board. (No way did you buy all those benefits for you and the spouse on one day a week.) If you work for upper management and your just hear to counter the honest posters....stay off the board.

     

    Geeeze.
    26 Feb 2013, 09:29 AM Reply Like
  • gmom3
    , contributor
    Comments (139) | Send Message
     
    retailgirl: I added spouse to this year. I only had my self covered for medical and dental the previous four years as he had his own coverage until last spring. I also have always had the term insurance for both of us the years I have been paying in. I don't do vision. At today's prices, it is very reasonable to pay out of pocket for new glasses every couple years when needed.

     

    I was never on commission at jcp, but I worked with a woman who had worked in a commission department. When they dropped commission in her area some years back (had nothing to do with the current drop in commissions), they did some kind of averaging of her sales and came up with her hourly salary after that. She was at the top of the range starting out so she never got a raise all those years after she got off commission. She did get some kind of end of year bonus type payment though. Nothing like the thousands of dollars but still a nice little payout. I did not reach that "top" of the pay scale until a year ago. Considering I started out years ago at around $6 an hour if even that much and no increase for a few years until they realized they were hiring new high school kids at a higher pay then I was getting, I quickly caught up and am content with what I make. I have worked at completely different types of jobs then selling in retail so I know I get paid quite well for the type of work I do. I can go into work, do my job, and go home. I don't have to come in early. I don't have work to complete at home. I just am at work when I am there. I can live my life without having my job consuming my "own" time.

     

    I do not intend to demean those employees who depend completely on their jcp income to provide for their families. I feel for them as I can not imagine how anyone could have done that anyway even in the past unless they were in management. I just have never been in that position to have to do that - provide for my family exclusively on a jcp salary. It has always been "icing on the cake" extras that I benefitted from as a part timer. That is why I can remain positive in my own situation.
    26 Feb 2013, 10:05 AM Reply Like
  • gmom3
    , contributor
    Comments (139) | Send Message
     
    retailgirl: Yes, you are right about the coverage being limited. I didn't even use any of the medical last year, not even a prescription. I think in the five years I have used any of it was once and the other times were for well checks. I did use all of my dental last year and I will have used all of it for the year by the end of this month. I have lived without any insurance at all for years so this is still better then I had before. Even when we had insurance with my spouse's employers, if we had a huge hospital bill, we had to pay out of pocket due to some loophole, like maternity didn't "count" so any complications after related to childbirth weren't covered. Most companies don't even offer any kind of insurance for part timers. Since we use doctors/dentists on the list, it still saves us some $ then if we had nothing. Insurance coverage in this country has been a joke forever.

     

    Yes, you are right. I don't make anything close to minimum wage so I can afford it. I also have other sources of income. I have never relied totally on jcp income for my livelihood. When I worked the one day a week to cover insurance that was only to pay for insurance as my spouse no longer was covered with his job. Now, I have take home because I work more hours.

     

    My response to "mug" was only that I have read that when someone gets their hours cut to part time there are NO benefits. I am just stating that there are, although limited. Insurance coverage at most places now are directed towards healthy lifestyles and being pro active in one's own health, rather then just a pay for everything type of coverage like we used to expect. So, no insurance coverage is perfect. The lady I work with who is full time has a spouse with severe health issues that are quite expensive, much more then I have ever had to address. They have kept her on so far.
    26 Feb 2013, 09:39 AM Reply Like
  • Gh0st
    , contributor
    Comments (16) | Send Message
     
    RJ reminds me of "That Kid" you see teetering back in his chair trying to balance themselves..... You yell and try to stop him but he keeps doing it till he finally falls backward head first into the desk behind him... Now blood is everywhere...

     

    It's just not RJ's though! What an idiot...
    6 Mar 2013, 04:39 PM Reply Like
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