Today, it was announced that JCP CEO Marvin Ellison has left JCP to become CEO of Lowes. During his time at JCP, Ellison was very productive at cutting JCP's costs and trying to make the company closer to in the black. However, sales never improved and you can only cut so much. As such, JCP's stock has continued to plummet. I dont' blame Ellison for jumping ship. It was sinking. He didn't create the drop, but he did nothing to turn it around either.
Since Ron Johnson (former Apple exec) took over at JCP as CEO (and eliminated sales and discounts, tried to transform JCP into Apple), the stock peaked at $41.72/share in 2012. Today, it is $2.25/share. During that time, Johnson was fired, an Interim was hired, then Marvin Ellison.
JCP used to be a staple, like your town arrived when a JCP opened up. What is interesting is that JCP and Sears were the best two department stores in terms of distribution networks to take their sales to an online platform and be super competitive and productive. If they would have expanded, they could have competed and probably kept Amazon down. Unfortunately, they become bloated with old execs with high salaries who were not adaptable. So they didn't change and their stores slowly died. They never invested in online shopping until it was too late.
These are two very interesting business cases.
Since Ron Johnson (former Apple exec) took over at JCP as CEO (and eliminated sales and discounts, tried to transform JCP into Apple), the stock peaked at $41.72/share in 2012. Today, it is $2.25/share. During that time, Johnson was fired, an Interim was hired, then Marvin Ellison.
JCP used to be a staple, like your town arrived when a JCP opened up. What is interesting is that JCP and Sears were the best two department stores in terms of distribution networks to take their sales to an online platform and be super competitive and productive. If they would have expanded, they could have competed and probably kept Amazon down. Unfortunately, they become bloated with old execs with high salaries who were not adaptable. So they didn't change and their stores slowly died. They never invested in online shopping until it was too late.
These are two very interesting business cases.
