Posted by Barry Silverstein on July 25, 2012 01:59 PM
When big retailers crash and burn, it seems they do so with style. The trials and tribulations of Sears/Kmart, despite its stylish moves into the fashion world, have been chronic and ongoing. Equally precarious these days is the fate of JCPenney.
In June, JCPenney brand president Michael Francis exited the troubled retailer after less than a year, in a shakeup that was seen as his taking the fall for CEO Ron Johnson. Francis, a former Target exec, along with Johnson, who formerly ran Apple's stores, couldn't combine their top shelf retail experience to effect a turnaround. On the contrary, the company's "fair and square pricing" (with the new logo at right to support the concept) essentially ditched sales and moved to Walmart-like "everyday low" pricing and twice-monthly clearance events. It was anything but successful. In fact, this lead balloon is now being replaced with a return to the more common retail strategy of a "sale."
Is it too little too late? The strapped J. C. Penney Company is cutting 350 jobs in its headquarters and selling part of its stake in Simon Property Group, a major mall developer, to raise $248 million in cash. Even so, the company is trying its darndest to crawl its way back into being a legitimate retail competitor, and that's where fashion comes in.Continue reading...