J.C. Penney: A Poor Excuse for a Pathetic Company
From the JCP earnings press release:
There are no quick fixes to correct the errors of the past.
That's really all you need to know. It's not as if I'm leaving out some important context that details exciting innovation at JCP. If I'm an investor, I'm furious. Very little has changed.
Here's a company that should be thanking Ackman and Johnson because, no doubt, we can logically link them to JCP's swift downfall. Now current management can harness this built-in excuse to buy itself time as it digs from the same failed bag of standard retail tricks.
It's not as if JCP was a stable business before Ron Johnson arrived. In fact, it's a bit like the 2011 version of Netflix
So that's what JCP is doing. Dragging the puck as it feebly attempts to dig itself out of a mess it conveniently credits to Ackman and Johnson.
Don't get me wrong, JCP was profitable before the former Apple
To sit here and argue how quickly Johnson accelerated JCP's decline, how much better off the company would be if he never left Apple and to dwell on the past distracts from the meaningful noise most brick and mortar retailers choose to ignore.
How does physical retail escape the culture of obviousness that holds it back? That keeps it from evolving with the rest of the world.
Addressing past mistakes out of the same textbook that helped create them will do little more than bring JCP back to mediocrity, if that.
Sadly, JCP's Board of Directors doesn't have the vision to rid itself of blamers and old-school physical retail lifers in favor of the tech mindset, staff and strategies that have made Starbucks
--Written by Rocco Pendola in Santa Monica, Calif.