“The latest painful chapter in the JCPenney saga has now been written,” Ken Segall blogs eponymously. “CEO Marvin Ellison resigned a couple of weeks back—with the company’s stock price down to a mere $2.43. That’s a particularly brutal number, considering that in 2007 a share of JCP went for $85.”
“Technically, this plummet was co-authored by three CEOs serving four terms — Marvin Ellison, Ron Johnson and two stints by Myron Ullman,” Segall writes. “By numbers alone, it’s hard to tell who was worse. The stock plunged 65% under Ullman (Act I), 54% under Johnson, 58% under Ullman (Act II) and 66% under Ellison.”
“So I was surprised that Ellison received the praise of many writers reporting his resignation. ‘He helped turn around J.C. Penney,’ said The Street. In what universe that happened may never be known,” Segall writes. “Not only do the writers let Ellison off the hook, they seem to rally under a common theme: it’s all Ron Johnson’s fault. After all, Ron was in and out in less than two years, and the stock was decimated during his reign.”
“However, this narrative ignores two major facts. First, JCP had already lost more than half its value before Johnson took the reins. Second, Ullman and Ellison succeeded only in driving JCP further into the ground,” Segall writes. “The truth is, Johnson’s vision was correct and necessary. History has now proven that JCP was (and is) doomed without a radical plan for reinvention. The company committed the classic sin of throwing out the baby with the bathwater.”
Read more in the full article here.
MacDailyNews Take: Always being right is both a boon and a curse, but we’re unfailingly happy to share our gift with you, dear readers. 😉
This is likely our last JC Penney article — to the chagrin of retail department store afficiandos the world over, we’re sure — unless and until JCP goes tits up, in which case we’ll take a moment to remind those who destroyed what’s left of it that they should have stuck with Johnson and given him time to execute his plan instead of panicking and yanking out the plug way too early. — MacDailyNews, May 6, 2013
SEE ALSO:
JC Penney brings back fake prices – May 6, 2013
Three ex-Apple execs exit JC Penney following Ron Johnson ouster – April 11, 2013
Yoshikami: The Ron Johnson disaster at JC Penney – April 9, 2013
Ron Johnson: Apple Stores vs. J.C. Penney – April 9, 2013
Will Apple bring Ron Johnson back? – April 8, 2013
Ron Johnson out as JC Penney CEO, says source – April 8, 2013
Three ex-Apple execs exit JC Penney following Ron Johnson ouster – April 11, 2013
Yoshikami: The Ron Johnson disaster at JC Penney – April 9, 2013
Ron Johnson: Apple Stores vs. J.C. Penney – April 9, 2013
Will Apple bring Ron Johnson back? – April 8, 2013
Ron Johnson out as JC Penney CEO, says source – April 8, 2013
Ron Johnson starting to look a lot more maniacal than brilliant – March 8, 2013
If JC Penney fires CEO Ron Johnson, analyst predicts bankruptcy – March 8, 2013
J.C. Penney CEO Ron Johnson cuts 2,200 more jobs as sales plunge – March 8, 2013
J.C. Penney posts large loss as sales sink further – February 27, 2013
JC Penney CEO Ron Johnson capitulates, brings back sales – January 28, 2013
Apple retail’s Ron Johnson and John Browett have proved the Peter Principle is alive and well – November 13, 2012
CEO Ron Johnson switches J.C. Penney to two-tier pricing with price-match guarantee – July 26, 2012
Why is Ron Johnson’s retail strategy for J.C. Penney failing? – June 26, 2012
J.C Penney’s stock tumbles after key exec’s abrupt exit – June 19, 2012
J.C. Penney reports loss and plummeting sales in 1Q – May 15, 2012
Why Ron Johnson left Apple to head JC Penney – April 30, 2012
J.C. Penney lures another executive from Apple – April 26, 2012
Steve Jobs’ ex-lieutenant Ron Johnson adds $1.5 billion to J.C. Penney in two days – January 30, 2012
J.C. Penney CEO Ron Johnson: What I learned building the Apple Store – November 21, 2011
New J.C. Penney CEO Johnson hiring former Apple co-workers – November 9, 2011
Why Apple’s retail genius Ron Johnson is paying for the privilege of running J.C. Penney – June 15, 2011
Apple’s retail store chief Johnson off to J.C. Penney; expected to become CEO within months – June 14, 2011