In Between the Numbers: Penney’s Big News
Thinking about the hiring of Apple’s Ron Johnson as the next CEO of J.C. Penney Co.
I think it’s a brilliant move. for these reasons:
Because – most of all – it signals that J.C. Penney has determined that its future will be more dependent upon its ability to create value through the delivery of a differentiating, sustainable, and omni-channel brand experience than by the differentiation of its products.
It signals an acknowledgement that apparel and domestic product is largely commoditized.
It signals an acceptance of Wall Street’s insistence that the same-old merchant prince approach to the business is not going to move the dial.
Johnson inherits a business that has declined some 11% in revenues since 2006, that doesn’t have iPhones and iPads to dazzle shoppers and drive traffic, and which has a brand aura more akin to Sears than to Apple.
He has huge challenges in front of him. Like – it should be said – most of US retailing.
But I like the odds.
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