Who is right? Who is wrong? I find it hard to believe that the people who know the answer to these questions would still have Ron John at the helm if they did not concrete evidence that he could turn and rebrand JCP into a modern shopping experience. In my opinion, the bleeding will end with the last quarter. Based on what I have seen with advertising, store improvements/pricing and the launch of new lines JCP will get the monkey of its back. It makes sense that the customers are not around during store remodeling. It makes sense that some of the core customer base would not be coming back (sorry grandma). What doesn't make sense is to miss something that is ahead by not taking your eyes off the rear view mirror. Granted you should proceed with caution but not miss the turn. Do not be late for this "every day low price" of this stock..... thanks Ron for the sale.
Sentiment: Strong Buy
You're an idiot making excuses for RJ. He has a bad strategy compounded by killing off profitable businesses while destroying customer service and satisfaction. As a veteran retailer, there are simple tactics for remodels that keep the project away from the customer.
Went to JCP, here in Albuquerque tonight. WOW what a difference!! It was so bright (in a very good way) and the name brand departments just stood out! Lots of color. It was a great experience. The Joe Fresh area was very clean and user friendly. Actually bought a couple hundred bucks of Joe Fresh goods. Quality was evident with really easy on the eyes prices. As said above... Ron gets my vote,..... too!! We used to go to Kohls and Macys and just walk through JCP... Now we will SHOP JCP. Just a really nice experience. In contrast... and compare.... Walmart is far darker (lighting), thusly less pleasurable. Target, like JCP... very well lit and well organized.
When I spoke to a salesperson at JCP tonight.... she was helpful. Also told me they are MUCH busier than she can remember. And that Joe Fresh knocked the socks off on sales over the weekend!! She was quite pleased with how the transformation had progressed. Same here.
Sentiment: Strong Buy
Agree. Ron is "Visionary" as Martha Stewart put it. He can see into the future while most people have their eyes fixated in the rear mirror. Who is the last great "Visionary" person? Yes, Steve Jobs. Ron may not be as great as Steve Jobs but at least he is visionary. Yes, he made a huge mistake by eliminating "sales" and by being arrogant of not even testing his ideas first. But those big mistakes are very easy to correct and he is correcting it. He admitted the mistake and took personal responsibility of it. Yet people still relentlessly blame his mistake in the past and blind themselves from his vision. No one is perfect. Is Steve Jobs perfect ? No. He too made huge mistakes. He too was very arrogant. He too was disliked or even hated by his former employees. But that didn't block him from becoming a great visionary genius when he corrected these mistakes.
Come on visionaries are suppose to see into the future so did he see this? He helped contribute to the unemployment rate in the US. When people are unemployed they don't have money to spend on "Joe Fresh" or "Martha Stewart" brands. They are looking for "Deals" = Sales. They are looking for "Coupons." to save more. Did this visionary know that JCP employees were some of their core customer base? Did he foresee that when he "eliminated" them that they, their families and their friends would not patronize the place anymore. Did he know that the unemployment has a "ripple effect". When the 19,000 + employees did not have the money to spend that other businesses in their communities suffered - had to shut their doors and thus more unemployment! Some employees that were lucky did find jobs but they are underemployed and JCP's new employees make so little per hour and have so few hours that by the time they pay their transportation to and from work that they don't have enough left over for them to shop at JCP either. Who is their target customer??? What kind of job to they have??? What kind of disposable income do they have??? Ron John. is in a futuristic science fiction universe. A true visionary would take into account the "current state of the Union," come back down to earth, make changes slowly as the economy allows. Instead he saved a lot of salary $'s, took his cut up front $53 million, and has continued his toying with a historic company. I hope the ghost of James Cash Penney haunts Ron Johnson forever knowing what he did to his "Golden Rule" Company!!!
"But those big mistakes are very easy to correct and he is correcting it"
Sorry Henry, but it will take a long, long time to undo the damage that RJ and Ackman have wrought on JCP. Competitors have managed to siphon off the JCP customers with more effective advertising, promotions and desirable merchandise, priced affordably. At every turn, RJ has zigged with he should have zagged...never bothering to pre-test any of his genius 'visions' before rolling them out.
Too many instances of "ready, fire, aim." JCP has become irrelevant now. Pre-Ackman, this company was in the critical care ward. All RJ and Wild Bill did was put a pillow over its face.
Who cares what's in the rearview mirror when you are heading, at 90 mph, into a brick wall?