J.C. Penney Falls After Francis Leaves Amid Strategy Flop

J.C. Penney Co. (JCP) (JCP) fell the most in a month after announcing president Michael Francis was leaving in the wake of a marketing strategy that flopped with shoppers.

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The retailer said in a statement yesterday that Francis stepped down after joining the Plano, Texas-based company in October. The company didn’t give a reason for his exit.

Chief Executive Officer Ron Johnson, who is taking over marketing and merchandising, is trying to remake the retailer’s image and overhaul its pricing strategy.

“The bottom line is, the marketing strategy wasn’t working,” said Bill Ackman, whose hedge fund, Pershing Square Capital Management LP, is the company’s largest shareholder. “Ron decided that he really needed to take over the marketing and advertising.”

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http://www.bloomberg.com/news/2012-06-18/j-c-penney-says-ceo-to-run-marketing-as-francis-leaves.html

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5 replies	Author	Time	Post
J.C. Penney Falls After Francis Leaves Amid Strategy Flop (Original post)	Purveyor	Jun 2012	OP
Funny, their strategy worked for me. I returned to JCP after a 15 year absence.	sinkingfeeling	Jun 2012	#1
Everybody likes a sale	RockaFowler	Jun 2012	#2
I'm a pretty loyal J.C. Penney customer.	NYC_SKP	Jun 2012	#3
Did anyone ever think that it might not be the marketing, but	Fawke Em	Jun 2012	#4
this is crazy	KT2000	Jun 2012	#5

Response to Purveyor (Original post)

Tue Jun 19, 2012, 12:09 PM

sinkingfeeling (28,080 posts)

1. Funny, their strategy worked for me. I returned to JCP after a 15 year absence.

Even got another credit card.

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Response to Purveyor (Original post)

Tue Jun 19, 2012, 12:22 PM

RockaFowler (4,920 posts)

2. Everybody likes a sale

Even if it isn't really a sale. Just so that they think it's a sale. Plus we loved getting the $10 off coupons each week or so.

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Response to Purveyor (Original post)

Tue Jun 19, 2012, 12:25 PM

NYC_SKP (49,516 posts)

3. I'm a pretty loyal J.C. Penney customer.

Usually, I can find mens' shirts and slacks and shoes that I like, and they don't go through nearly as many changes in store layout as other stores have from year to year.

I like 'em.

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Response to Purveyor (Original post)

Tue Jun 19, 2012, 12:30 PM

Fawke Em (2,576 posts)

4. Did anyone ever think that it might not be the marketing, but

the fact that the niche market they want HAS NO MONEY?!

Unemployment, under-employment and stagnant wages have driven what's left of the middle class and the working class to spend less of what little disposable income they have at yard sales, eBay and thrift shops.

We can't keep trying to sell products to people who have no money! And part of the reason we have no money is that retailers side with big business/multi-national corporations to the detriment of the worker bees, who would buy their products IF they had the money.

Retails, et al, need to take a class at Henry Ford 101 and stop blaming their marketing/advertising and PR strategies.

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Response to Purveyor (Original post)

Tue Jun 19, 2012, 12:58 PM

KT2000 (9,796 posts)

5. this is crazy

Our local Penney's has never been busier.
This must have to do with something else - likely the Ellen DeGeneris ads and the homophobes.

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