“In June 2011, J. C. Penney announced that Ron Johnson, who had led Apple retail stores in a period of high growth, became the company’s new CEO.
On February 1, 2012, J. C. Penney began a new pricing method, with “Every Day” prices on most days reflecting what used to be sale prices, “Monthly Value” for certain items every month in place of sales, and “Best Price” the first and third Fridays of each month, tied to paydays. Prices would also not end in 9 or 7 and would instead use whole figures to price items. The changes in the stores include a focus on the mini-stores such as those for Martha Stewart products.
In 2012, fourth quarter sales for J. C. Penney were poor. Sales were down 28.4% from a year earlier and same store sales were down 32%. Strategic choices made by Johnson a year earlier, including the change in pricing strategy, were being called into question.
On April 8, 2013, Johnson was fired from J. C. Penney after 17 months with the company. Mike Ullman, the retailer’s former CEO, was announced as his replacement shortly afterwards—the official statement claimed that Ullman was “well-positioned to quickly analyze the situation J. C. Penney faces and take steps to improve the company’s performance.”
The paragraphs above are from Wiki. JC Penney’s “New Coke” mistake is probably going to push them into bankruptcy. Stock price of JCP was $35’ish prior to the Apple CEO take over in 2012. As of April 21, 2020 the stock price is 24 cents. The article below discusses their looming bankruptcy.
Apple CEO Johnson, did not understand his market. He did not know clothing retail. He did not know the shopping habits of those who were already his loyal customer.
When I see JCP’s demise, I’m reminded of Neil de Grasse Tyson’s quote: “One of the great challenges in this world is knowing enough about a subject to think you’re right, but not enough about a subject to know you’re wrong”. Johnson did not know enough about his subject to even know he was wrong.
Experience matters. Whether it’s a CEO from a Fortune 500 company or a Realtor that helps you buy or sell a home, it is important to hire someone who has a solid understanding of the subject. As an Integrated Realtor with over 17 years experience in real estate plus a background in marketing, financing, management and visual merchandising, I have a solid understanding of the primary subject (real estate) as well as the secondary subjects needed to purchase or sale a home. Hire experience!
https://talkbusiness.net/2020/04/bankruptcy-looms-for-jcpenney-neiman-marcus-as-covid-19-threatens-retail-sector/?fbclid=IwAR2aDMxJ59_O2xoASg-XmKNkIr2fENFErkyL_YzSIX3Ox_cZXp6bqAccQ3s