Thursday, February 28, 2013

Sinking: Company's Last Shot at Survival

From Yahooo finance: One year ago J.C. Penney CEO Ron Johnson laid out a plan to change the way the world thinks not just about Penney's but the entire department store model. New pricing, fully refreshed stores designed to be a destination "mall within a mall" and partnerships with fashion forward brands never before associated with the dowdy J.C. Penney.

"All it takes is courage" Johnson told a packed audience, "We can change a brand overnight."
Suffice it to say Johnson and J.C. Penney fell short of those lofty ambitions. Last night it concluded one of the worst years in corporate history with the announcement of their 4th Quarter results. 

How bad was it? Consider:
JCP lost just short of a billion dollars for the year with $551 million of that coming in the all important holiday period.
Total revenue fell 25%
The company sacked more than 30% of the employees at its Dallas HQ; more than 1,600 people
Internet sales dropped a stunning 34%. For perspective rival Macy's (M) grow its online business 48%...

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