J.C. Penney Falls After Francis Leaves Amid Strategy Flop [View all]
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.
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.”