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J.C. Penney (JCP +0.4%) may be facing a stronger undercurrent of board dissatisfaction that what...

J.C. Penney (JCP +0.4%) may be facing a stronger undercurrent of board dissatisfaction that what was previously thought, according to the WSJ's Dana Mattioi. Though Bill Ackman has said all the right things publicly, Vorando's Steve Roth has been pushing for making strategic changes before sales stay weak for too long. The big picture: While choosing to apply the Apple model instead of basic retail 101 principles contributed to a 20%-25% falloff in sales, the retailer still has Q1 and Q2 to show an upturn (off of soft comps) and restore confidence.
Comments (13)
  • karmike
    , contributor
    Comments (190) | Send Message
     
    Let there be no mistake. Ron Johnson has hurt sales soooo bad that ANYBODY could take over and post comp sales Increases at some point. The issue here is that there has been so much erosion in sales, with negative profit, that he will have to grow sales significantly just to get back to where they were three years ago. If memory serves he has to get BACK to $17.8 billion in sales and $1.09 in profit per share to get back to where he started.....now that would be a "turn-round" in itself. JCP needs to fire RJ and get someone in place who understands retailing....this guy is a lost ball in the high grass!
    25 Feb 2013, 10:49 AM Reply Like
  • karmike
    , contributor
    Comments (190) | Send Message
     
    Oh, one more thing. That "Apple model" they keep talking about......you know, the one where you have one or two products that everyone in the world wants and you are the only store that has it....THAT model.......Do you think RJ understands fashion merchandising is not like apple? Have you seen people line up in the parking lot of a clothing store to purchase the latest hot thing? RJ skipped class when it comes to retail 101!
    25 Feb 2013, 10:54 AM Reply Like
  • bebopr
    , contributor
    Comments (345) | Send Message
     
    *First, what's in "retail 101" that you believe Johnson has failed at?
    *Second, what mistakes have been made with new merchandise labels offered since his arrival?
    *Third, is the fact that only a small percentage of the shops have been completed worth considering relative to longer range results once ALL shops are in place? Or is the complete "stores with a store concept" not viable?
    *Fourth: What better overall strategy would y'all offer?
    25 Feb 2013, 11:34 AM Reply Like
  • karmike
    , contributor
    Comments (190) | Send Message
     
    Everything he is doing has been done before and failed, and it as been done by JCP! This man is so arrogant that he fails to recognize his mistakes, learn from his mistakes, and the corporate "culture" at JCP , which is 100 percent his at this point, is horrible. What part of this dismal failure do you people who support him not get? Your either shorts in the market, or you don't mind seeing your investment be squandered to zero by a retail clutz!
    26 Feb 2013, 08:20 AM Reply Like
  • bakmanone
    , contributor
    Comments (39) | Send Message
     
    Walking away from the Furniture and Drapery business in 2012 cost JCP a huge amount of sales. Without a comprehensive advertising plan you will not get this business back. Reported sales to Furniture Today for the year of 2010 for JCP furniture was $650 million dollars. Also JCP had a huge market share of the window covering market. Now is has all been frittered away to capture the 18-35 year old customer who are having trouble finding employment in this dour economy. Things don't look much better for 2013.
    25 Feb 2013, 02:48 PM Reply Like
  • pambarbarito
    , contributor
    Comment (1) | Send Message
     
    Have you been into any of the "new" JCP stores with Ron Johnson's concept on display? I am a stockholder so I am constantly traveling to stores for iput from salespeople. Also I am 60 yrs. old so I would be one of those who is touted as being lost as a JCP customer. To the contrary!!!
    Give this man a chance. He is very forward thinking and I believe many doubters need to catch up to his vision. Those that have, love what he is doing and understand change can initially cause a bit of confusion and resistance in the short term. He's looking at the long-term. JCP HAD to change to survive and successfully compete in the retail world. His new stores are VERY exciting and allow the shopper to focus on a particular brand that works for them and go directely to that "shop" in the store without being forced to sift through several other brands that don't work for them. I have design and retail background and have worked in large cities and small towns in the retail and clothing business. The only way I can see Mr. Johsnson's concept not working is for stockholders, board members, analysts and bloggers to continue to pummel him, creating negative press that can only taint and disuade potential costomers from considering JCP as a choice for retail shopping.
    25 Feb 2013, 03:45 PM Reply Like
  • karmike
    , contributor
    Comments (190) | Send Message
     
    Pambarbarito: Your Ron Johnson's mother, right?
    26 Feb 2013, 08:14 AM Reply Like
  • KnowsALot
    , contributor
    Comments (35) | Send Message
     
    Pambarbarito:
    They've tried it HIS way for 1 year to the dismal results we now find.
    I too initially drank his brand of 'kool-aid' but the fact remains that he is just NOW shifting to an 'old' model way, i.e. sales, which means- if indirectly- his vision was flawed at best and just plain WRONG at worse.
    RJ is wrong.
    And he will retire one very rich man for destroying a once proud company.
    Got to love America!
    26 Feb 2013, 06:12 AM Reply Like
  • bebopr
    , contributor
    Comments (345) | Send Message
     
    Y'all continue to take shots at Johnson but none of you have answered my 4 questions asked above. BTW, JCP is still in the drapery business in a major way (go INTO the stores and LOOK). JCP still has decorators going into homes with a tape measure. And it should have dumped furniture long ago as it never made a dime for the firm. A "comprehensive" advertising plan is forthcoming when all the pieces are in place. For now, it has to be "cut and paste" as new labels and shops come on line. In her comments above, pambarbarito nails it. She's long the stock. I wouldn't bet against her position.
    26 Feb 2013, 09:27 AM Reply Like
  • KnowsALot
    , contributor
    Comments (35) | Send Message
     
    To believe in the way you do, bebopr, you have to suspend reality.
    26 Feb 2013, 04:23 PM Reply Like
  • bakmanone
    , contributor
    Comments (39) | Send Message
     
    JCP never made a dime in furniture according to you because they refused to run it like a true furniture store. For the most part that only focused on it 3-4 times a year. Furniture and mattresses is a 11 month selling season. December is the only month when the business tails off because of Christmas. You are right there is a big presence of Drapery and Furniture in the store but no inventory to back it up. You cannot sell from an empty wagon. The public today wants instant gratification. As far as furniture is concerned they need to hire the best in the business in the Buying Office. The sales staffs in the store are capable and professional. That is those who are left. Furniture can be a viable line and the customer has come to expect in a JCP store just like they expect refrigerators at Sears. Enough said.
    3 Mar 2013, 10:08 AM Reply Like
  • bebopr
    , contributor
    Comments (345) | Send Message
     
    Like paint, hardware, home 'n garden, automotive, smoke shop, and toys, furniture has no place being in a Penney store. Focus, focus, focus primarily where the real money is.....what folks put on their bodies and beds, around their windows and in their bathrooms.
    4 Mar 2013, 12:03 PM Reply Like
  • bakmanone
    , contributor
    Comments (39) | Send Message
     
    Bepor, too bad we are not all as smart as you appear to be. A store has the right to put in them what the customer expect to find when they come thru the door. They expect to find furniture for their home. It is up to the management to figure how to make it profitable. Find out what the people want and give it to them, then find out what they do not want and take it away. Fairly simple concept.
    10 Mar 2013, 10:18 AM Reply Like
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