JC Penney’s CEO Ron Johnson, formerly chief at Apple’s retail business, is on the receiving end of scrutiny after overseeing the company’s lowest sales in more than two decades.
Apple Inc. (NASDAQ:AAPL)’s former retail chief, Ron Johnson, is not a happy man. Johnson, who is currently the chief executive of J.C. Penney Company, Inc. (NYSE:JCP), is being placed under the microscope after overseeing the company’s lowest sales in more than two decades.
As we reported on Thursday, JC Penney’s 4Q earnings report was marked with an abundant bearishness. The company’s losses were far worse than analysts had estimated, coming in at $552 million from $87 million a year earlier. These losses were grounded on low revenue of $13 billion, which according to company reports, is the lowest recorded revenue since 1987.
Following these chain of events, CEO Ron Johnson has received overwhelming scrutiny. Interestingly, Johnson admits grave errors. The former Apple Inc. (NASDAQ:AAPL) employee, who began his ill-fated J.C. Penney Company, Inc. (NYSE:JCP) tenure in 2011, is quoted saying that he ‘made some big mistakes.’ One of these mistakes includes the spearheading new strategies – most notably replacing coupons and sales with “Every Day” low prices. In an attempt to overhaul the strategy and reverse fortunes, the sending of coupons to customers has resumed. Similarly, promotions for holidays and events like Valentine’s Day have been reintroduced.
In the company’s plans for the future, Johnson has remarked that every employee on the floor of a JC Penney store will be issued with an iPod. “Every employee on the floor of a J.C. Penney Company, Inc. (NYSE:JCP) store will carry an iPod and be able to check out customers anytime and anywhere in the store,” he said. Johnson adds that 25 percent of transactions in the past week were conducted through mobile devices, exclaiming the need for digitizing the entire system.
Interestingly, Johnson’s performance in Apple Inc. (NASDAQ:AAPL) was a foil of what investors and other stakeholders saw in the past quarter. He had quite a commendable run during his tenure as retail chief in Apple.