Professor Elam

Wed May 16, 2012

Ron Johnson the new JC Penny CEO is discovering what it is like to be a retailer without an exclusiv e 20 item line of sought after products. The stock dropped 14.7 % – yesterday. 

The company had double the loss expected last quarter and is suspending the dividend as it sees ' more restructuring charges.'

Johnson was supposedly the brains behind Apple's successful retail stores. Those of course were about as different from a typical JCP outlet as a Ferrari is from a Kia Rio. And just last week I read that morale was sinking as the lay offs continued among middles managers at stores. 

The idea that somehow Johnson would dupicate the Apple success in a chain that has massive competition with Target, Kohls, Bealls ec, made no sense to me. And JCP has been moving out of malls into stand alone locations. Lots of changes, no real results. 

And of course this will give the I told you so crowd at JCP plenty of ammunition. Infighting never gets results.