Jadeyzma and Jenifer both shared this story from the Chicago Tribune: JC Penney CEO Ron Johnson is OUT today, and has been replaced by… his predecessor.
J.C. Penney Chief Executive Ron Johnson, who tried to replace sales and coupons with everyday low prices, is out after sales plunged 25 percent last year, and the department store chain said it will replace him with his predecessor Mike Ullman.
Shares in J.C. Penney rose nearly 11 percent after the initial CNBC report that Johnson was out, then fell 6 percent after the company said Ullman was back.
And here’s another report from the New York Times:
Still, it is a curious move to go back to Mr. Ullman. Most of the senior employees that he had assembled at Penney either left or were dismissed by Mr. Johnson. And it was dissatisfaction with where Mr. Ullman was taking the company that led Mr. Ackman to look for another leader in the first place. Though profitable, Penney was seen as a mediocre retailer that was losing ground to competitors like Macy’s and Kohl’s.
Now, it is unprofitable, still losing ground to Macy’s and Kohl’s, and in the midst of a very expensive turnaround, the future of which is uncertain. Though some of Mr. Johnson’s plans can no doubt be jettisoned, his new merchandise is arriving in stores, the stores are undergoing extensive renovations, and Penney has already revised pricing several times. The company is also fighting Macy’s in court over Penney’s attempt to sell Martha Stewart home goods in its stores.
What do you think — are they going to be able to turn it around with Johnson now gone?