November 18, 2012

If you follow this blog, you know that I am not a fan of J.C. Penney Co.’s Chief Executive Ron Johnson. The company’s 3rd quarter results are in and although the “spin doctors” like to point out that the company’s loss narrowed, the truth is this: Same-store sales slid 26%, Internet sales were down 37%, and their gross margin was 32.5%, down from 37.4%.

Now, I’ve never met Mr. Johnson and he may be a very nice man. I don’t really have a problem with Ron, it’s his marketing strategy that I disagree with. Also, ever since my days in the airline industry, I hate to see Boards spend multi-millions bringing in CEOs that promise a quick fix, when that money could be better spent updating stores, investing in middle management (the doers in most companies), and creating something customers value (instead of telling them what they SHOULD value). I hope Obama can keep the economy improving, since Ron will be looking for a new job in 2013.

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