See how the farmer waits for the precious fruit of the earth, being patient with it until it receives the early and the late rains. - James 5:7

Thursday, July 19, 2012

J.C. Penney Co. Overhaul.

Big, big mistake!


Look for policy changes...

First a little background:
NEW YORK -- In the latest sign of turbulent times at J.C. Penney Co., the mid-price department store chain said Michael Francis, the former Target Corp. executive brought in to help redefine the brand, is leaving the company.

In a terse statement issued late Monday, the department store operator gave no reason for the abrupt departure of Francis, who had been on the job for a little over eight months. As president, Francis was responsible for the marketing of a controversial new pricing plan that aims to get rid of hundreds of sales events. He also oversaw merchandising and product development.

Shares fell nearly 6 percent in after-hours trading.

Penney said that Ron Johnson, the former Apple executive and new CEO, will assume direct responsibility and oversight of the company's marketing and merchandising functions.

The surprise move comes as the department store chain is scrambling to reverse a sharp drop in customer counts and plummeting sales after Johnson's new pricing strategy ended up turning off customers, who are accustomed to coupons and big markdowns. The plan was implemented Feb. 1. - Source  
Francis left a month ago:  “It’s not us, it’s you” was the underlying sentiment felt as the news broke that President of Marketing for JC Penney Michael Francis was leaving the company this past Monday. Francis, a former Target Corp. executive, was recruited eight months prior to head JC Penney’s rebranding effort in order to turn around troubling times. - Source
Now this: 

J.C. Penney stock crashes with news of gay marriage support

Stock rated "junk" status, loses 50% since February, 350 layoffs at home office
July 17, 2012
Simply put, people are not shopping at J.C. Penney. AFA and OneMillionMoms are showing success in the effort to educate people to Penney's aggressive national campaign to promote "gay" marriage.
The company is going downhill fast. Since February, the company stock has lost more than half its value, and Standard & Poor's Ratings Services lowered its credit rating on J.C. Penney Co. further into "junk" status.
Snapshot of J.C. Penney under same-sex marriage crusade
February 2012 May 2012 June 2012 July 2012
JCP announces Ellen DeGeneres as their new spokesperson.JCP launches catalog ad featuring two "gay" moms.JCP launches catalog ad featuring two "gay" dads.JCP stock rated "junk" by S&P. JCP fires marketing exec.
Stock price:
$41.32
Stock price falls to $35.67 Stock price falls to $25.83 Stock price falls to $20.02
First-year CEO Ron Johnson's decisions have led to disastrous results for the company. Rather than build on the faith-based traditions of founder James Cash Penney, Johnson has abandoned family values and taken the company into a financial tailspin by embracing social activism.
Families are the backbone of Penney's existence. As long as it pushes homosexual marriage, families will go elsewhere. - Source


Wow!  Now I'm thinking boycotts really do work!  Watch your back Target!  General Mills, are you paying attention?

 H/T Ray at Stella

7 comments:

  1. I liked their new pricing. I don't play the "on sale" game. Their support for homosexual marriage? Big mistake...

    ReplyDelete
    Replies
    1. I noted the Michael Francis link because he came from Target and I'm fairly certain the Ellen/gay parents in ads strategy came from him. As we know - Target endorses gay marriage, and as I've noted before, it is part of the culture within the corporation - always has been.

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  2. Good. I hope it wakes them from their fantasy.

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  3. To quote Julia Roberts in Pretty Woman, "big mistake. BIG. HUGE."

    On the flip side, we'll see what happens to Chick-fil-A after their people "came out" in support of traditional marriage. I'll be eating as much chicken as I can possibly stand.

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  4. Kim, Chick-fil-A is a private company and only those who work for the company may purchase stock; consequently, there is no valid method of determining how the stock price has been affected by the statement of the company president.

    ReplyDelete
  5. My plan has worked out perfectly. I first devised a strategy to get the stock to tank. Now I'm buying the stock majority dirt cheap and appointing Terry Nelson as my spokesman and CEO.

    ReplyDelete
  6. I don't think Target will have any problems. Their customers are hipsters. JCP on the other hand, is middle aged moms in sweats working in their gardens and getting the kids to school. Chase away your base customers and you won't do well.

    ReplyDelete


Please comment with charity and avoid ad hominem attacks. I exercise the right to delete comments I find inappropriate. If you use your real name there is a better chance your comment will stay put.