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  • J.C. Penney - A Retail Dinosaur Soon To Be Extinct [View article]
    Make that "dump", and "2014" not "2024", LOL, I don't think even that amount of time and a trillion dollars thrown at the Ronnie plan would have worked.

    Typing on a mobile device with fat fingers, poor eyesight, minimum screen, no edit, is a bummer.

    Getting pissed at that " I never take responsibility" Ackman and his henchmen Ron doesn't help.
    Sep 1 11:28 PM | Likes Like |Link to Comment
  • J.C. Penney - A Retail Dinosaur Soon To Be Extinct [View article]
    Best thing is to dumped some of those remodeled stores with the damage Ronnie Home area that will never carry their weight. Those window store displays, you can call them mini stores if it makes you feel better, will never be worth the space they consume. Then JCP needs to pray for a very good holiday season. My thoughts too, the game will be over by late summer of 2024 for JCP.

    It takes years and years for a retailer to gather a following, cash flow, then have a need to expand the business, floor space within those stores. JCP doesn't have the years to get back the solid customer base it once enjoyed and now it has too much floor space, 111 million square feet of  it spread out over 1,100 stores trying to support the older customer base numbers that isn't there.

    JCP owns a little under half its stores and the rest are rented at a cost of only $4 per square foot. This $4 bucks was, is a huge advantage over any competitor. No one else comes close. This $4 per square footage is what Ronnie destroyed. Stores are measured via of profit per square footage. Of those 1,100 stores half lost a little less than a 1/3 of their space to the RonCo Home area.  

    With a smaller customer base  trying to support 111 million square footage and what, about 37 millions, in that non profitable sq footage home area, it just isn't looking good. 

    Would be interesting knowing what percent of the JCP owned stores vs the rented space got the Home area makeover? Was it based on location? Urban vs Rural? Profit?

    Guess I will have to wait until JCPenny's sorry history enters into the MBA's text books on "How not to run a Retail Store" or the chapters on "Ron Johnsoned" how to avoid it . You can bet that will happen. This train wreck is just to good not to be studied.

    52 percent of the old shoppers were 55 or old? Lessons learned?

    Those 55 and older were once young and the reason your store grew to its size, they felt betrayed. Why?

    Insulting your old customer base via of saying "JCP isn't for old ladies anymore" and smiling while you do it doesn't endear you to young or old. Yes Ron said this. Having a personality that oozed that loathing, for the company, its people, its core consumer base means you are just a bad fit to start with.

    Running a store on size 2-6 especially in women's clothing is a niche market and is absolutely insane for a retailer like JCPenny. I am no genius, i never worked for an Apple retail store at minimum wage but this i know there is a reason this over priced stuff is sold in small cracker box mall stores. The Fat Lady didn't even sing on this one before she left the JCP building, she was fired.

    What Ronnie's real problem was and still is he never understood what Jobs was really saying on how products should be design, why, and why they would sell. It was too deep for him. A good example is when Hitchcock was said to have said, "actors were animals", he said no, he didn't say that, he said "actors should be treated like cattle", basically like cattle moved, placed where the director had spent time and energy designing the shot. Letting every actor/actress in on that decision was a formula for disaster.

    Ron wasn't, ain't no genius, a good Harvard showman at best.
    Sep 1 08:12 AM | 2 Likes Like |Link to Comment
  • At 52-Week Lows, J.C. Penney Stock Is Untouchable [View article]
    Yeah, those shops aren't going to save them, too faddist, expensive, there is so much disposable income from the new customers Ron thinks he will get and the changes made burned the bridge to the old customer base. He is betting the farm in that wifi working well, tagged " wifi wired" merchandise, WallyMart backed off it, checking out by iPad? Yes that will work out well, you have a two hand fulls of clothes guess you drop them to the floor while you whip out that credit card. I have seen concerns of a non employee checking you out. My guess, any customer over 30 is going to balk at shopping JCP, so you have 14-29 vs 30-99, guess which ones make more money. The idea you can build, in Ron's case convert, a mini mall next to/attached to a mall and compete with the brand loyalty found in the mall is absurd. The on-line retailing too will eat their lunch. Take a new brand going into JCP William Rast, aka Justin Timberland, this is an expensive brand, read cheap, sold at a premium. Just a quick Google will get you well over 55 % off $200 jeans. JCP will feel the Best Buy " Showrooming" bite aka window show local for size and fit, buy on-line because of lack of sales. Or go to Target they sale this as a limited brand, tshirt $25 VS $50 MSRP. The cash bleeding, the firing of tons of local middle management last year, regular store staff, these are not good signs, there is getting nothing left on the bone but to start closing once profitable stores. I see nothing here. What was that bonus Ron gave to, who was it Francis, his old Target cronnie $12 million to come to JCP and then fired him 8 months into the job. $12 million down the toilet plus his salary. Wow.
    Jan 21 08:31 AM | Likes Like |Link to Comment
  • At 52-Week Lows, J.C. Penney Stock Is Untouchable [View article]
    Yeah, those shops aren't going to save them, too faddist, expensive, there is so much disposable income from the new customers Ron thinks he will get and the changes made burned the bridge to the old customer base. He is betting the farm in that wifi working well, tagged " wifi wired" merchandise, WallyMart backed off it, checking out by iPad? Yes that will work out well, you have a two hand fulls of clothes guess you drop them to the floor while you whip out that credit card. I have seen concerns of a non employee checking you out. My guess, any customer over 30 is going to balk at shopping JCP, so you have 14-29 vs 30-99, guess which ones make more money. The idea you can build, in Ron's case convert, a mini mall next to/attached to a mall and compete with the brand loyalty found in the mall is absurd. The on-line retailing too will eat their lunch. Take a new brand going into JCP William Rast, aka Justin Timberland, this is an expensive brand, read cheap, sold at a premium. Just a quick Google will get you well over 55 % off $200 jeans. JCP will feel the Best Buy " Showrooming" bite aka window show local for size and fit, buy on-line because of lack of sales. Or go to Target they sale this as a limited brand, tshirt $25 VS $50 MSRP. The cash bleeding, the firing of tons of local middle management last year, regular store staff, these are not good signs, there is getting nothing left on the bone but to start closing once profitable stores. I see nothing here. What was that bonus Ron gave to, who was it Francis, his old Target cronie $12 million to come to JCP and then fired him 8 months into the job. $12 million down the toilet plus his salary. Wow.
    Jan 21 08:30 AM | Likes Like |Link to Comment
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