In the continuing saga of JC Penney going to an everyday-low-price strategy, JC Penney lost over $55 million and the CEO compared coupon shoppers to drug users, trying to wean them off coupons and sales.
Today, JC Penney President Michael Francis unceremoniously left the company. From the Associated Press, via Daily Mail:
J.C. Penney president, who axed sales and coupons in favour of cool new image, to leave the company with immediate effect.
In the latest sign of turbulent times at J.C. Penney, the department store chain said Michael Francis, the former Target Corp. executive brought in to help redefine the brand, is leaving the company.
In a terse statement, the department store operator gave no reason for his immediate departure, effective Monday.
‘We thank Michael for his hard work at J.C. Penney and wish him the best in his future endeavors,’ said Ron Johnson, Penney’s new CEO and former Apple Inc. executive who came on board in November and is trying to transform the chain from a retail has-been to retail darling.
The move comes as the department store chain is scrambling to reverse a sharp drop in customer counts and sales after a new pricing plan that eliminates hundreds of sales events ended up confusing customers.
Is anyone surprised?
grandma says
No, I am not surprised. I have not stepped foot in a JCP
since they went to everyday low pricing.
Bring the coupons back.
pattycakes says
I’m not surprised at all. Mr Francis came from Target, which everyone knows purchased Marshall Fields, ran it like a discount store, destroyed their customer base, and sold it for pennies to Macy’s. The rest is history. What were they expecting him to do for JCP that was any different? He was well on his way to succeed in a similar path. But don’t feel sad for Mr. Francis. You know his golden parachute clause will be used and he’ll walk away sad, but rich. Now if only they’d unceremoniously do the same for Mr. Johnson…..
addicted says
Not surprised at all. We talked about this back in January/February and knew JCP would lose a lot of customers. Did the new strategy confuse customers? You bet it did!
JCP used to be the dept. store for me. . .I’ve been going to Kohl’s since January.
I hope they are able to turn things around.
SouthernReverie says
It sounds to me like Michael Francis was thrown under the bus. Ron Johnson was the one that pushed the no-sales, no-coupons plan, and he still contends that the problem is that the customers don’t understand his strategy. And don’t forget that it was Ron Johnson who compared coupon users to drug addicts.
staceymott says
I hope Wags is paying attention so they may change their new policies before they start loosing customers also!