His Makeover Strategy In Shambles, J.C. Penney CEO Ron Johnson Is Out | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

    His Makeover Strategy In Shambles, J.C. Penney CEO Ron Johnson Is Out

    After an unsuccessful makeover of the retailer J.C. Penney, Ron Johnson, the company's chief executive, is out.

    In a press release, the company said Myron "Mike" Ullman, who was the company's previous CEO, is retaking the reins.

    "While J.C. Penney has faced a difficult period, its legacy as a leader in American retailing is an asset that can be built upon and leveraged," Ullman said in a statement. "To that end, my plan is to immediately engage with the Company's customers, team members, vendors and shareholders, to understand their needs, views and insights."

    The Wall Street Journal explains Johnson joined J.C. Penny from Apple. He was given a $53.3 million pay package to make the move. The Journal adds:

    "But Mr. Johnson's strategy of filling Penney with branded boutiques and doing away with clearances and coupons appeared to alienate its core shoppers. The company lost $4.3 billion in sales in 2012, after Mr. Johnson took the helm; declines accelerated throughout the year. In the fourth quarter, including the crucial holiday season, sales dropped 28.4%, contributing to a net loss of $552 million, the worst of the year.

    "The company held $930 million in cash on Feb. 2, a decline of 38% from a year earlier."

    Business Insider reports that when news of Johnson's ouster hit Wall Street, J.C. Penny stocks jumped in after-hours trading. Once the company announced it was brining back Ullman, the price "tumbled."

    Copyright 2013 NPR. To see more, visit http://www.npr.org/.

    WAMU 88.5

    Art Beat With Lauren Landau, March 3, 2015

    You can see paintings that speak to an ongoing overseas conflict or see a comedy about mistaken identity and love.

    NPR

    Sandwich Monday: The Funnel Cake Corn Dog

    For this week's Sandwich Monday, we try a new twist on a classic. It's a corn dog that uses funnel cake in place of corn meal to encase a hot dog.
    NPR

    Controverisal Netanyahu Speech Is Latest Glitch In U.S.-Israel Relations

    Israeli Prime Minister Benjamin Netanyahu speaks to a joint meeting of Congress on Tuesday. The speech highlights differences between the U.S. and Israel on how to stop Iran from going nuclear.
    NPR

    Free Wi-Fi On Buses Offers A Link To Future Of 'Smart Cities'

    A new service in a Portuguese city not only provides commuters with free Internet connections but it also helps collect data that makes the municipality run more efficiently.

    Leave a Comment

    Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.