RJ targeted a niche in the retail market that was too small to support a retailer of the size of JCP. Now that JCP is positioning itself between Macy's and Kohl's, it will have a market of sufficient size and one that better fits its core strengths.
Although I have great respect for Mike Ullman, negative comments about JCP often center around the expectation that JCP will not recover under the guidance of a CEO that failed the first time around. I don't think he failed, but enough investors do that it puts a strong headwind on the stock price. The markets are enamored with creativity and innovation, and it's time for JCP to play that card. Hopefully Sadove will take the position shortly after Q4 results are announced, if not before.
MU didn't fail the first time around - - here's a synopsis of his stats before the dumbo duo Ackman/RJ took over - - - that said, MU was the man for the job at that time - methodical, well thought out plans for the long term, well respected in the retail and the banking/Wall Street world - - - - however, he's not a turnaround guy - - - - for that you need a well respected "bsatard" not afraid to make decisions/mistakes quickly and move on - - - time is your enemy - - - - slow and easy won't work
- Fourth quarter earnings of $1.09 per share, up 30% over previous year
- Merchandising initiatives drive 4.5 percent same store sales growth for the quarter
- Liz Claiborne(R) and other exclusive brands deliver strong sales, attract new customers
- Q4 gross margin rate in-line with expectations; expenses well-leveraged against sales
- Adjusted Q4 operating income increased 13 percent versus last year
- Strong financial condition, cash and cash equivalents of $2.6 billion
A good quick read on the subject of startups and turnarounds "Barbarians to Bureaucrats Corporate Life Cycle Strategies" by Miller tells you exactly the type of guy you look for at this stage of the game - - -
when you can't define your market segment and find lines of apparel, electronics, etc to appeal. when you can't make the stores look like a hangover from the seventies. when you can't make the systems work quickly for impatient customers. Sorry, it's beyond the scope of anyone to save this hot mess