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Ron Johnson ousted as JC Penney CEO

85 点作者 anderzole大约 12 年前

24 条评论

riggins大约 12 年前
"I've said many times that when a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact."<p>-Warren Buffett
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siglesias大约 12 年前
It's a sad state of affairs in American consumerism that folks are attracted more to <i>discounts</i> than <i>low prices</i>. Johnson's plan made sense: lower prices to what average selling prices are during promotions and cut back on promotions. Lower noise. Less discount anxiety. Too bad consumers aren't strictly speaking rational in this way (1, 2).<p>1)<a href="http://cl.ly/image/2y1T1L2M1s0e" rel="nofollow">http://cl.ly/image/2y1T1L2M1s0e</a> 2)<a href="http://cl.ly/image/1a3D3c1J1Z0I" rel="nofollow">http://cl.ly/image/1a3D3c1J1Z0I</a>
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georgemcbay大约 12 年前
If they really wanted change, they should probably have rebranded completely.<p>I'm 40 years old and throughout my entire life, JC Penney has represented a pretty consistent image of being a discount store where old people shopped. I don't think anyone (including Steve Jobs) would have been able to modify that image in my mind in a scant 2 years while keeping the brand name, the image is just too entrenched at this point.<p>This leaves the store in a worst-of-all-worlds position where people who don't currently shop there maintain the decades-old image of what the store used to be while people who did shop there are put off by the changes.<p>I don't know anything about the retail clothing business but just based off common sense I could have predicted this short-term result based on the half-way measure of trying to redefine an iconic (for better or worse) brand without actually rebranding. Seems pretty obvious, no?
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bennyg大约 12 年前
JCPenney (JCP now?) is SEVERELY lacking a vision. And they have been for years. In my undergrad, I was on the school advertising team competing for NSAC (<a href="http://www.aaf.org/default.asp?id=123" rel="nofollow">http://www.aaf.org/default.asp?id=123</a>) and JCPenney was our client. We were tasked with creating a $100,000,000 integrated marketing campaign. All along I knew that this money absolutely did not need to go to a marketing campaign. It needed to go to top-down, business level reinvention. New branding would have to be part of it, obviously, but a culture change inside the company was a lot more necessary.<p>This was during the time when "New look, new day, who knew?" was their tagline. Which was utter shit when every time you go into a store it looked like it was in shambles, and telling people you had a new look when they could clearly smell the same pile of dung from a block away doesn't increase customers. It was bad.<p>Then about 4 weeks from competition, they release a new logo and a new tagline (honestly we were rebranding towards a JCP moniker during our ideation phase anyways), basically throwing us under the bus. We had to make something for their rebrand - it had been 10 years since they did anything previously.<p>It's no surprise to me that anything unconventional was discarded quickly, and Ron was booted. These people are short-term thinkers, that are entrenched with the big-box department discount store mantra. They were getting close with store-in-a-store ideas like MNG by Mango and Sephora taking up space inside. It's just unfortunate that they're so worried about providing discounts and racing to the bottom with cut-rate merchandise (even their self-created brands like St. John's Bay had a ~4% profit margin).<p>The market is huge, but they are stuck in the stone age.
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colbyh大约 12 年前
Whether his strategy is flawed or not is, unfortunately, not the issue at hand. As great as it would be to discuss the technical merits of what he was trying to achieve, it seems like Johnson's biggest failing was not properly contextualizing what he was trying to do to the company.<p>For instance, JCP has been rather drastically upgrading the quality of their menswear. They've not only started catering to a much more fashion-oriented consumer (they even brought on Nick Wooster, who was previously at Bergdorf Goodman and Gilt Groupe's high end retail site Park &#38; Bond - <a href="http://www.jcpenney.com/dotcom/jsp/browse/marketing/promotion.jsp?pageId=pg40023600013" rel="nofollow">http://www.jcpenney.com/dotcom/jsp/browse/marketing/promotio...</a>) but they took a stand that such clothes should be wearable and affordable. It's an audacious, if respectable, goal that anyone should be able to see can't be achieved in a year or two. It took JCrew much longer than that to make a similar transition.<p>Shareholders should have been very aware that things will get much worse before they get better, as it takes time and conditioning to expunge "bargain basement" from the brain and into something that more closely resembles a homegrown Uniqlo. People gave Johnson credit for doing so at Target but to be fair Target didn't gain traction on the upward move till years after he left. He should have never put himself in a position where people were expecting progress barely a year after taking the reins.<p>Turning around an entrenched company like JCP is a task that really doesn't follow much of Apple's game plan, and I think Johnson's decade in the tech sector might have spoiled him in estimating customer trends (especially with regards to reconditioning behavior). It's a bummer, as someone into clothes AND tech I feel like the JCP transformation could have been a really great story.
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ChuckMcM大约 12 年前
I think this is an amazing example of an employee who is a bad fit. Ron was clearly a star at Apple but he was a dud at J.C. Penny. There will be lots of arguments about why that is, from classic operational economics to somewhat fuzzier buyer happiness metrics, but the more interesting message is that the problems can't be fixed by swapping out one piece.<p>This is true in groups too. I've seen groups lose a star player, only to have another 'star' swapped in but with a different vibe and it all goes to hell. This seems to be magnified with CEOs.<p>I know that I do not have the fortitude that it takes to be successful in a walmart/target/costco kind of retail space. So I wish him luck.
Zimahl大约 12 年前
There's nothing left to say except the people who hired Johnson are idiots. He was successful at marketing a high-end brand as high-end and had no clue on how to <i>tactfully</i> re-brand a company that had been around for generations. Especially considering it didn't need to be re-branded.<p>Do you know why Nike doesn't sell shoes in Target or Walmart? You'd dilute the brand. So they bought Converse. The opposite is true as well, however. You certainly can cause brand confusion where your old customers don't like the changes and your new higher-end customers - well, they are still shopping at Nordstrom.<p>Every step he made was fraught with clear consequences. Getting rid of discounts. Over-streamlining stores to a point they look partially empty. Trying to bring Target's successful ideas (like their mini-boutiques) into JCP just on a bigger scale. And trying to steal Martha Stewart from Macy's was just plain dumb, that's going to cost the company a lot of money.<p>The board should've hired a CEO from the ranks of Target, Macy's, or Nordstrom instead of Apple. The high-end tech marketing didn't translate to middle-tier consumer shopping marketing.
zacharypinter大约 12 年前
Planet Money had a relevant/good discussion about the fallout from JC Penney's coupon-less strategy on one of their recent podcasts:<p><a href="http://www.npr.org/blogs/money/2013/03/08/173829409/episode-442-into-the-future" rel="nofollow">http://www.npr.org/blogs/money/2013/03/08/173829409/episode-...</a>
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orangethirty大约 12 年前
Every time my wife drags me into JCPenney, I ask myself the following question: What is this company about?<p>- Brand recognition (status)? Nope.<p>- Low Prices? Nope.<p>- Quality (higher than) products? Nope.<p>- Cutting edge fashion? Nope.<p>- Fashion for average folk? Nope.<p>They are simply without a defined aim. And that's why their business lacks. Retail is still alive and kicking, but not for companies who still live in the days of The Brady Bunch.
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gfodor大约 12 年前
I'm not completely up to date on the happenings at JCP, but my understanding was that Ron's strategy was going to take time to be fully realized. I would not be surprised if this is short term thinking getting in the way of a long term strategy. Regardless, JCP shareholders should be very worried since now they've traded a potentially flawed strategy with effectively no strategy at all.
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iamabraham大约 12 年前
The problem was not that people like discounts more than low prices. It was that the company never got rid of discounts. They advertised new low prices and no discounts and then still had discount racks all over the store, leading customers to recalibrate the goods in their minds as being less expensive (and possibly "cheaper") then before while still allowing them to wait for discounts.<p>The company also introduced a lot of product lines that were supposed to be specialty brands which led to entire stores looking like disjointed flea markets. There was no way to tell what was unique or special because everything was branded as unique and special.
pmb大约 12 年前
Dangit. I really liked shopping at the new JCPenny. Every price was rounded to the nearest dollar (and usually the nearest 5 dollar) and included tax. I could walk in, try the things on I needed, hand the cashier exact change, and get out, all without needing to do stupid coupon crap. I could buy jeans and shirts and the cognitive load was really low.<p>I liked not having to think really hard while clothes shopping. I liked it a lot. But I suppose a target market of "people who hate clothes shopping due to the artificially high cognitive load" is a pretty slim market segment.
michaelpinto大约 12 年前
I liked what he was trying to do, but he may have been too upscale for what that JC Penny as brand has become. Also the fact that JC Penny was based in Texas is just a bad omen for a company focused on making retail fashion exciting.
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emehrkay大约 12 年前
I went to JC Penney this past weekend and it was wonderful. I got some jeans and a shirt for like 40 bucks.<p>They had a coupon though, it was spend 50 get 10 off. I didn't have one and the cashier used the one at the register. She also used an iPhone to ring up up instead of the cash register sitting in front of her.
ilamont大约 12 年前
NPR had a great piece about JC Penney's about a month ago. The reporter, her sources, and the customers she talked with made a very convincing case that in its zeal to attract trendy fashionistas in the coastal cities, it had driven away its long-time customers (mostly middle-aged and older) looking for deals.<p>Found it: <a href="http://www.npr.org/blogs/money/2013/03/01/173203739/sales-are-like-drugs-what-happens-when-a-store-wants-customers-to-quit" rel="nofollow">http://www.npr.org/blogs/money/2013/03/01/173203739/sales-ar...</a> (I recommend listening to the audio, which has more detail)
mindstab大约 12 年前
He's a one trick pony and clearly out of touch. He doesn't really seem to have any grasp of the market JC Penny was actually in or that discount cheap clothes is a pretty radically different market then high end premium electronics. (further whereas Apple was the sole supplier/manufacturer, JC Penny was just reseller of various brands they picked). Then he executed the one strategy he know that apparently just luckily worked for him at Apple. Sadly, based deeply outside of reality it epically failed to execute as hoped here and JC Penny lost half their market.<p>The whole thing is a little sad. Thankfully he's gone and maybe for the company's sake they can pull out of his tailspin. If not oh well, that's also what you get for not vetting people and just buying into their PR and dropping a rockstar into the driver seat and giving him the keys without vetting him.
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bpm140大约 12 年前
You can take a brand down-market, but it's very, very difficult to take it up-market.<p>JCP stands a better shot at dominating the "discount" market, which everyone associates it with, than combating half a century of marketing.
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QuantumGood大约 12 年前
When I shopped for my wedding, I had to convince both my mother and my wife that JCP would have the highest quality at the lowest price. They disagreed, I was proven correct.<p>Has long amazed me that JCP couldn't brand properly when their other competencies were so strong.<p>I was absolutely aghast when I first heard what Johnson was doing. It sounded — almost literally — insane, and never for a moment looked or sounded any better. Marketing is marketing. Target and Apple did the marketing for him, so apparently he never really learned what marketing is.
DannoHung大约 12 年前
Shoulda never agreed to the role unless he was gonna be given 5 years of runway. They wanted a turnaround far faster than they had capital for.
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MartinCron大约 12 年前
I have often said that wholesale website redesigns are a bad idea because they alienate the hardcore fans while swapping one set of problems for a different set of problems. I hadn't, before this, realized that the same might hold true for department stores.
gmu3大约 12 年前
Well I think the lesson here is don't embark on an ambitious radical strategy without first doing some testing/sampling.
rossjudson大约 12 年前
Fix JC Penney. You have 3 minutes. Go!!
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anderzole大约 12 年前
and now a triumphant return to Apple?!?
asmithmd1大约 12 年前
JCPenny is still in business?