J.C. Penney Company, Inc. (JCP): Looking Back at Ron Johnson’s Company

In its extremely abrupt shift (and subsequent waffle), J.C. Penney Company, Inc. (NYSE:JCP) alienated its elderly, bargain-hunting customer base without having tapped into its new target demographic. This left the store with approximately zero supporters while the company spent billions revitalizing.

The sad part is, the revitalization is working. Sales per square foot figures in renovated stores are substantially higher than in the traditional ones. This was all just done in the wrong order, and Johnson paid for that error with his job (and a slice of dignity).

The future of JCP
The company will likely trade for the lowest prices we have ever seen it in coming days, but I can’t in good conscience recommend the value buy. I wholeheartedly thought we would see Ron Johnson beat this dead horse back to life, and I was wrong.

I hope that in the coming months and years, Johnson’s early efforts yield more fruit and the company can shift course away from the rocks. As for right now, join me in mourning.

The article Looking Back at Ron Johnson’s J.C. Penney originally appeared on Fool.com and is written by Michael Lewis.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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