CEO hints at transformation
J.C. Penney Co.'s new CEO says he wants to make the department store chain "America's favorite store," but everyone will have to wait until Jan. 25 to find out what his strategies are. Ron Johnson, who was chief of the Apple stores division and officially took over the Penney job two weeks ago, said during Penney's third-quarter earnings call that he would unveil his plans at a special meeting in New York City.
"I'm not here to improve, I'm here to transform," Johnson said. He also described his goal as helping the chain "reclaim its birthright." He and former Penney CEO Myron E. Ullman, who is now executive chairman, have been meeting with suppliers around the world for the past four months, he said. Johnson is bringing in two colleagues from Apple: Michael W. Kramer, who was CFO at the computer company's retail division, will join Penney as COO next month, and Daniel Walker, who was Apple's chief talent officer, is now talent chief at Penney. Also part of the new management team is Michael Francis, a Target senior executive who joined Penney in October as president.
"I'm working with the new and existing teams to reimagine everything we do," Johnson said. "From product to pricing to promotional strategies - we will create a better way for people to shop."
The job will bring its challenges, of course. Penney suffered a 1.6 percent year-on-year decline in same-store sales and a 4.8 percent decline in total sales for the third quarter. Internet sales for the quarter dropped too, off 5.4 percent from a year ago. The chain has $1.1 billion in cash on the balance sheet and says it expects overall sales this year to be about flat with last year.
-------------------------------------------
Jeffrey Gunning AIA
Senior Vice President
RTKL Associates, Inc.
Dallas TX
-------------------------------------------