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MacRumors
Jun 14, 2011, 10:32 AM
http://cdn.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2011/06/14/apple-retail-chief-ron-johnson-departing-to-lead-j-c-penney/)


http://cdn.macrumors.com/article-new/2011/06/ron_johnson-150x230.jpg

The Wall Street Journal is reporting (http://online.wsj.com/article/SB10001424052702303848104576385510781132614.html) that Apple Senior Vice President of Retail Ron Johnson (http://www.apple.com/pr/bios/ronjohnson.html) is leaving the company to take the position of president at department store chain J.C. Penney, a move that will put Johnson in position to become CEO at the company within the next few months.J.C. Penney Co. is tapping Ron Johnson, head of Apple Inc.'s iconic retail stores, as its new president and eventual chief executive, people familiar with the situation said.

The company is expected to announce Mr. Johnson's appointment later today. Mr. Johnson will become CEO in the next few months, succeeding long-time leader Myron "Mike" Ullman.Johnson, who came to Apple eleven years ago from Target, has been credited with being the driving force behind Apple's runaway success in its retail store initiative that has grown to include 325 stores worldwide. Johnson has also been a fixture at many of Apple's highest-profile retail store openings around the world.

Johnson's philosophy (http://www.macrumors.com/2010/08/13/apples-ron-johnson-on-the-retail-store-experience/) for Apple's retail stores has been to "create a place that people will love", focusing on the customer experience rather than simple square footage or sales metrics, although Apple's retail stores are of course performing extremely well by sales measures as well. During his tenure at Apple, he oversaw the entire retail store development process, from the original stores in Tysons Corner, Virginia and Glendale, California to the iconic buildings now located in a number of cities around the world.

Article Link: Apple Retail Chief Ron Johnson Departing to Lead J.C. Penney (http://www.macrumors.com/2011/06/14/apple-retail-chief-ron-johnson-departing-to-lead-j-c-penney/)



ratzzo
Jun 14, 2011, 10:34 AM
Good for him. If I could be CEO of a very large company like J. C. Penney, I would take the offer without blinking.

RafaelT
Jun 14, 2011, 10:38 AM
Sounds like a good move for him career wise.

I think by this point Apple has retail figured out well enough that they will be just fine without him. He did a really good job though.

paulypants
Jun 14, 2011, 10:38 AM
This guy obviously loves a challenge, having done all he can to get Apple Retail where it needed to be, it seems like the right time to move one. No bigger challenge than trying to resurrect such a stale brand as JC Penney...good luck Ron!

ghostlyorb
Jun 14, 2011, 10:40 AM
Apple will miss him, I'm sure. But at least he can make a difference somewhere else.. and hopefully help another business from going under (I doubt they will anyway.. J.C. Penny is usually packed..)

*LTD*
Jun 14, 2011, 10:41 AM
JC Penney will be cool again.

Will do good
Jun 14, 2011, 10:41 AM
The reasons Apple retail was successful is their quality products and their profit margin, which allow Apple to be customer friendly and focused.

JC is a much bigger challenge.

HelveticaNeue
Jun 14, 2011, 10:42 AM
"Do you want to sell t-shirts for the rest of your life, or do you want to stick with me and change the world?"

Seriously, I think this could be a great move for him. He's done amazing work with Apple and this opportunity allows him to essentially start from scratch and allows him to advance up the chain a bit higher.

Mattie Num Nums
Jun 14, 2011, 10:43 AM
I had the pleasure of working with Ron for many years. He was the real brains behind Apple Retail. Great guy.

seamuskrat
Jun 14, 2011, 10:44 AM
I would hope a firm like Apple that relies so heavily on individual talent would have succession planning in place. It will be a loss. Some one equally talented in a slightly different way will be selected and add their unique twists to the experience. Hopefully they have as much success.

That said, while being a CEO is a nice job change, going from a retail Guru at Apple to JC Peney, CEO or not may be a let dow.

As a PhD canidate in Organizational behavior I would love to see how Apple's senior staff interacts and gets along. Maybe this guy wanted to move on to be closer to familt, the pay, etc. Or perhaps he didn't like the dynamic. So many possibilities.

I can only hope JC penney gets better. They are not so hot by me.

Grimace
Jun 14, 2011, 10:44 AM
I had the pleasure of working with Ron for many years. He was the real brains behind Apple Retail. Great guy.

Me too. Great guy, smart guy -- good move for him.

acslater017
Jun 14, 2011, 10:44 AM
This guy obviously loves a challenge, having done all he can to get Apple Retail where it needed to be, it seems like the right time to move one. No bigger challenge than trying to resurrect such a stale brand as JC Penney...good luck Ron!

Yea, at first I was like, "REALLY?! Swapping Apple for J.C. Penny?!"

But then, I guess he has really gotten Apple's retail off the ground and he's proven himself to be really successful. The Apple Store is obviously beyond its infancy now and can be handed over to someone else...That, and they offered him to be the President :p Good for him

alent1234
Jun 14, 2011, 10:47 AM
The reasons Apple retail was successful is their quality products and their profit margin, which allow Apple to be customer friendly and focused.

JC is a much bigger challenge.


not much different than the standard luxury store model i see

open stores in "high end" areas

have samples of the product

leave a lot of room for people to move around. the trend is that the price of the product is inversely proportional to the amount of space between products

hire halfway decent help

upsell high margin extras

package your products with little wasted space. the boxes on some PC's make them so bulky and increases shipping cost

liberal return policy

jonnysods
Jun 14, 2011, 10:47 AM
JC Penny is going to rock in a couple of years. 3 shirts, 2 socks, bare walls.

ganja
Jun 14, 2011, 10:54 AM
wow, big move. i worked with ron back in 2002-2003 when the stores were just starting to fly off the grounds.

he is a great guy, extremely nice with a warm and friendly heart, best of luck to him.

drober30
Jun 14, 2011, 10:55 AM
This guy obviously loves a challenge, having done all he can to get Apple Retail where it needed to be, it seems like the right time to move one. No bigger challenge than trying to resurrect such a stale brand as JC Penney...good luck Ron!

Agreed!

fabian9
Jun 14, 2011, 10:55 AM
... and that Johnson will personally make a long-term $50 million investment in J.C. Penney as a sign of his confidence in the future of the company.

wow, they definitely pay these people too much!

rdowns
Jun 14, 2011, 10:57 AM
I'm sure they have tasked him with making JC Penny hip. Old line department stores have an old customer base. If anyone os up to the task, he is.

ChrisTX
Jun 14, 2011, 10:59 AM
Not a fan of J.C. Penney but good for him!

Consultant
Jun 14, 2011, 10:59 AM
Good luck Ron. Wow, J.C. Penney? That's quite a challenge.

I would hope a firm like Apple that relies so heavily on individual talent would have succession planning in place.

So you think the most successful tech company in the world has no clue when it comes to its executive staff? Surely it must be Steve Jobs that's running every single part of the billion dollar business? :rolleyes:

Antares
Jun 14, 2011, 11:00 AM
"J.C. Penny....doing it right!"

That bugger of a slogan has been stuck in my head since the 90's. :mad:

It will be interesting to see if Ron can "Applize" the department store business.

ziggyonice
Jun 14, 2011, 11:01 AM
JC Penney will be cool again.

Wish he'd been CEO when I had crappy college job working there... :rolleyes:

zin
Jun 14, 2011, 11:01 AM
Good for him!

Now, cue the, “Everyone is deserting Steve and Apple is doomed” comments.

NinjaHERO
Jun 14, 2011, 11:01 AM
Can't blame the guy. He gets to become top dog. It will be interesting to see how much better he can make JC Penny's. I didn't even realize that company was still around.

motulist
Jun 14, 2011, 11:05 AM
I didn't even realize jc penny still existed.

DoofenshmirtzEI
Jun 14, 2011, 11:07 AM
I don't know about the "customer experience" in the Apple stores. I went in to pick up an iPad that I placed a reservation for, but instead of just ringing me up so I could be on my way, I had to wait 15 minutes for an associate to be free so that he could waste his time trying to upsell me. He got bad numbers from me, and I got mad waiting around for my iPad.

Garand
Jun 14, 2011, 11:07 AM
Women make 80% to 90% of the household buying decisions. If Penny's can cater to their needs (convenience, quality, value (not low cost necessarily) then Penny's will do just fine.

Mattie Num Nums
Jun 14, 2011, 11:08 AM
"J.C. Penny....doing it right!"

That bugger of a slogan has been stuck in my head since the 90's. :mad:

It will be interesting to see if Ron can "Applize" the department store business.

You mean "Gapize". Because thats what Apple did. They took the Gap, BR, Pottery Barn, and the Ritz Carltons model and turned it into Apple Retail. Ron was the brains behind it and it worked to perfection.

reden
Jun 14, 2011, 11:08 AM
Well, hopefully J.C. Penney changes its image because right now it isn't looking very good! You walk into those stores, and they look real ghetto.

Foxglove9
Jun 14, 2011, 11:09 AM
As someone who works for Penney's I am very excited to hear this news!

The company is profitable, but it has been trying to target a younger/modern audience lately, and this might just be what they need.

macthetiger85
Jun 14, 2011, 11:10 AM
You heard it here first folks:

Coming to a Penney's near you.

- One to One Personal Shopping
- No more customer service center - instead a bunch of people running around in blue shirts
- iPads everywhere letting you pick out your outfit with FaceTime camera (so it's you on the iPad) and then showing you where to find all of the pieces.
- Here's my favorite - The Taylor Bar [TM]

This could work - just watch out for the white ninja, he might try to "covertly" drive in to the store!

Mattie Num Nums
Jun 14, 2011, 11:11 AM
Well, hopefully J.C. Penney changes its image because right now it isn't looking very good! You walk into those stores, and they look real ghetto.

The stock just shot up 4 bucks. Looks like Rons already got the Apple effect going.

bdkennedy1
Jun 14, 2011, 11:12 AM
JC Penney will be cool again.

Uh, I don't ever recall JC Penney being cool. They are about as lackluster as KMart. Last year a got a JC Penney gift card for Christmas and gave it away.

vivithemage
Jun 14, 2011, 11:13 AM
Damn, he dropped 50 million into the company? Higher up's at apple make a LOT of money.

Foxglove9
Jun 14, 2011, 11:17 AM
You heard it here first folks:

Coming to a Penney's near you.

- One to One Personal Shopping
- No more customer service center - instead a bunch of people running around in blue shirts
- iPads everywhere letting you pick out your outfit with FaceTime camera (so it's you on the iPad) and then showing you where to find all of the pieces.
- Here's my favorite - The Taylor Bar [TM]

This could work - just watch out for the white ninja, he might try to "covertly" drive in to the store!

lol not far off...

-they wear red shirts already (rather than blue).
-they have iPads at the fine jewelry center to make orders for customers
-they have giant touchscreen interactive kiosks through the store to browse the jcp website and products

Bubba Satori
Jun 14, 2011, 11:20 AM
JC Penney will be cool again.

No.

Mattie Num Nums
Jun 14, 2011, 11:22 AM
First thing I would do is rebrand the company to simply J.C.P. JC Penney has way to much baggage attached to the name. New short name, new CEO, new image. Its exactly the same formula Ron used at Target. He rebranded the entire company and its effect is still lasting and in effect today.

RawBert
Jun 14, 2011, 11:22 AM
Hopefully he'll get rid of those annoying commercials featuring the super loud squeaky voiced girl.

ABernardoJr
Jun 14, 2011, 11:23 AM
I don't know about the "customer experience" in the Apple stores. I went in to pick up an iPad that I placed a reservation for, but instead of just ringing me up so I could be on my way, I had to wait 15 minutes for an associate to be free so that he could waste his time trying to upsell me. He got bad numbers from me, and I got mad waiting around for my iPad.

What would you expect, for an associate to leave a customer he or she was talking to just to ring you up? I understand the part about being upset about trying to sell you more things but how can you complain about them not leaving their customers while they're talking? I'd think you'd be upset if you were talking to an associate and he or she just left so the other customer could save 15 whole minutes.

HitchHykr
Jun 14, 2011, 11:23 AM
Did you guys see the part where he's investing $50M into JC Penney? I hope that doesn't become a new trend, I can imagine my next interview:

Them: "How much can you 'invest' in the company?"
Me: "I can put in 50"
Them: "50 Million?"
Me: "No, 50 bucks"

Mattie Num Nums
Jun 14, 2011, 11:24 AM
Did you guys see the part where he's investing $50M into JC Penney? I hope that doesn't become a new trend, I can imagine my next interview:

Them: "How much can you 'invest' in the company?"
Me: "I can put in 50"
Them: "50 Million?"
Me: "No, 50 bucks"

Happens a lot with new CEO's. That "investment" usually pays off no matter what happens.

roar08
Jun 14, 2011, 11:26 AM
No.

^^

macthetiger85
Jun 14, 2011, 11:27 AM
lol not far off...

-they wear red shirts already (rather than blue).
-they have iPads at the fine jewelry center to make orders for customers
-they have giant touchscreen interactive kiosks through the store to browse the jcp website and products

ahh - hadnt been to penney's in years

ogee
Jun 14, 2011, 11:28 AM
Dam, thats a bummer.

Good luck Ron.

qwertme
Jun 14, 2011, 11:29 AM
As far as I understand it, he isn't putting 50 million on the table today, he is being given the option to buy 50 million $ worth of stock in JC Penny at today's price in 6 years.

I am sure he will do great, but it kind of sucks that they try to spin this as him making an investment in the company when it's actually the company giving him an incentive.

iOrlando
Jun 14, 2011, 11:36 AM
As far as I understand it, he isn't putting 50 million on the table today, he is being given the option to buy 50 million $ worth of stock in JC Penny at today's price in 6 years.

I am sure he will do great, but it kind of sucks that they try to spin this as him making an investment in the company when it's actually the company giving him an incentive.

he's using $50 million of his own money to buy warrants now, which will give him the option to sell stock at a certain price at a certain point in the future. As it stands now, if JCP stock does nothing for 7 years, and remains at its current price, he will make $150+ million on his initial $50 million investment.

what is striking about this is the size. not many people in the position to be CEO of a U.S. brick and mortar retailer have $50 million lying around.

turd
Jun 14, 2011, 11:36 AM
focusing on the customer experience rather than simple square footage or sales metrics

What? When I worked at a location in Vancouver the sales metrics were relentless. Unqualified managers who haven't sold a Mac in their life would sit you down for a talk if you didn't sell enough Applecare or MobileMe. They used intimidation methods if you haven't sold enough… and if you did sell enough they would wave the carrot infront of your face saying you could move up in the company. When the time came to hire new geniuses and creatives they would end up hiring someone even less qualified externally.

Metrics were the biggest part of working in Apple Retail…*they didn't want to lose people who could sell Applecare/MobileMe/ProCare.

Trauma1
Jun 14, 2011, 11:37 AM
As far as I understand it, he isn't putting 50 million on the table today, he is being given the option to buy 50 million $ worth of stock in JC Penny at today's price in 6 years.

I am sure he will do great, but it kind of sucks that they try to spin this as him making an investment in the company when it's actually the company giving him an incentive.

It works both ways. He now has a personal financial obligation to keep the stock price higher than what he bought into it at and keep the company/board/shareholders happy.

This is not uncommon.

ThunderSkunk
Jun 14, 2011, 11:37 AM
1. Maybe he/apple feels like his major contributions have been made, & there's more opportunity to see big results from your work at a new co?

2. At some point, everyone on the Apple team has probably learned what they need to, to continue on with that vision without him ...& his salary. I do wonder if the same thing could be said for Jobs by now.

3. Haven't seen a Penneys since I was a kid. They had an awesome toy department with all the Transformers & Mask toys. And give out andes mints by the millions... fun.

bwillwall
Jun 14, 2011, 11:37 AM
Sounds like a boring job

jacollins
Jun 14, 2011, 11:38 AM
Hrm, going to a dieing legacy retail company with tons of competition in a economy that's looking like it's about to drive off a cliff... Yeah. Definitely a challenge.

d4rkc4sm
Jun 14, 2011, 11:38 AM
is this confirmed?

JCPennyRumors

HighDesert50
Jun 14, 2011, 11:39 AM
Hmmm ... perhaps we will see some Apple products in JC Penny.

Arcus
Jun 14, 2011, 11:45 AM
That is one big forehead.

roar08
Jun 14, 2011, 11:45 AM
I don't think leaving Apple is stupid, but I think joining JCP is. The success of Apple's retail stores can be attributed to Johnson insofar as he was responsible for retail operations but the overall success is as much timing as anything.

I understand the desire to lead an iconic brand from the top seat, but JCP? It won't happen. Apple got to pick its retail locations whereas JCP is where it is: low-image retail. I'm sure they'll be shuttering some locations and opening new ones ... but the challenges, while they may look exciting, are quite large. QUITE large.

Thunderhawks
Jun 14, 2011, 11:46 AM
JC Penny is going to rock in a couple of years. 3 shirts, 2 socks, bare walls.

No retail packaging.

You put the stuff on in the store. Environmentally friendly.

Before you go there you can upload your body and try on shirts , socks and underwear via DVD or download,.

It's all good.

bobob
Jun 14, 2011, 11:51 AM
I don't think leaving Apple is stupid, but I think joining JCP is. The success of Apple's retail stores can be attributed to Johnson insofar as he was responsible for retail operations but the overall success is as much timing as anything.

I understand the desire to lead an iconic brand from the top seat, but JCP? It won't happen. Apple got to pick its retail locations whereas JCP is where it is: low-image retail. I'm sure they'll be shuttering some locations and opening new ones ... but the challenges, while they may look exciting, are quite large. QUITE large.

...and the final kick-in-the-head - - having to pay $50 million of his own money for the privilege.

:confused:

ny3ranger
Jun 14, 2011, 11:53 AM
Dude is smart. He just made himself 5 million with his 50 because he knew the stock would go up.

Image (http://www.macrumors.com/2011/06/14/apple-retail-chief-ron-johnson-departing-to-lead-j-c-penney/)


Image (http://cdn.macrumors.com/article-new/2011/06/ron_johnson-150x230.jpg)

The Wall Street Journal is reporting (http://online.wsj.com/article/SB10001424052702303848104576385510781132614.html) that Apple Senior Vice President of Retail Ron Johnson (http://www.apple.com/pr/bios/ronjohnson.html) is leaving the company to take the position of president at department store chain J.C. Penney, a move that will put Johnson in position to become CEO at the company within the next few months.Johnson, who came to Apple eleven years ago from Target, has been credited with being the driving force behind Apple's runaway success in its retail store initiative that has grown to include 325 stores worldwide. Johnson has also been a fixture at many of Apple's highest-profile retail store openings around the world.

Johnson's philosophy (http://www.macrumors.com/2010/08/13/apples-ron-johnson-on-the-retail-store-experience/) for Apple's retail stores has been to "create a place that people will love", focusing on the customer experience rather than simple square footage or sales metrics, although Apple's retail stores are of course performing extremely well by sales measures as well. During his tenure at Apple, he oversaw the entire retail store development process, from the original stores in Tysons Corner, Virginia and Glendale, California to the iconic buildings now located in a number of cities around the world.

Article Link: Apple Retail Chief Ron Johnson Departing to Lead J.C. Penney (http://www.macrumors.com/2011/06/14/apple-retail-chief-ron-johnson-departing-to-lead-j-c-penney/)

Trauma1
Jun 14, 2011, 11:57 AM
...and the final kick-in-the-head - - having to pay $50 million of his own money for the privilege.

:confused:

He doesn't have to pay. He's choosing to invest as a sign of good faith to show that he believes in the company and its future.

He will most definitely profit from this quickly and easily.

guvna
Jun 14, 2011, 11:58 AM
Happens a lot with new CEO's. That "investment" usually pays off no matter what happens.

If wonder if he made the investment before the market opened today? If he did he is already up around $8.5 mil

The stock if flying off that news.

He is clearly in it for the long term but it would be interesting to see the volume in JCP options yesterday.. by people in the know

morespce54
Jun 14, 2011, 12:10 PM
Did you guys see the part where he's investing $50M into JC Penney? I hope that doesn't become a new trend, I can imagine my next interview:

Them: "How much can you 'invest' in the company?"
Me: "I can put in 50"
Them: "50 Million?"
Me: "No, 50 bucks"

It's more like:

Them: "How much can you 'invest' in the company?"
Me: "I can put in 50 B"
Them: "50 Billion?"
Me: "No, 50 Bucks"

;)



But seriously, I'm afraid it might become a trend. You'll have to buy your CEO title.

TheSlush
Jun 14, 2011, 12:14 PM
Great guy who seemed to genuinely enjoy chatting with Apple fans, including myself at the NYC Upper West Side opening.

Good luck, Ron!

d4rkc4sm
Jun 14, 2011, 12:16 PM
wow 3 updates to a non-story.

vartanarsen
Jun 14, 2011, 12:16 PM
You see? this is where he can come in and use his Apple connections to get those dang Apple machines into JC Penny.."Unllocked iPhone 4...$649..enter credit card" LOL

Popeye206
Jun 14, 2011, 12:21 PM
Maybe Apple can recruit the Microsoft Store kingpin?

Or wait.... do they have any stores still? :p

JC Penney's will probably have a "Fashion Bar" soon.

iRobby
Jun 14, 2011, 12:26 PM
“Everyone is deserting Steve and Apple is doomed”

carmenodie
Jun 14, 2011, 12:26 PM
Good for him. He earned his stripes but his move to JCP ain't going to changed a damn thing there. JCP is cluttered with sh** from just about every damn retailer. The staff is low paid and pissy. Have you ever seen a manager at JCP? LOL!

lowonthe456
Jun 14, 2011, 12:27 PM
Ron Johnson, came such a long way from working at that stereo store and picking up chicks at that pizza place in the mall

;)

DoofenshmirtzEI
Jun 14, 2011, 12:29 PM
What would you expect, for an associate to leave a customer he or she was talking to just to ring you up? I understand the part about being upset about trying to sell you more things but how can you complain about them not leaving their customers while they're talking? I'd think you'd be upset if you were talking to an associate and he or she just left so the other customer could save 15 whole minutes.

No, there were other employees ringing people up for other stuff like iPods and even iPhones, they simply wouldn't ring the iPad up until the guy who was supposed to wring more money out of me quit trying to wring more money out of the customer he was presently talking to.

One of the advantages to getting one on launch day is there are too many people to spend 15 minutes to upsell every one.

JGowan
Jun 14, 2011, 12:30 PM
I had the pleasure of working with Ron for many years. He was the real brains behind Apple Retail. Great guy.We use to play poker on a weekly basis. Great Retail man. Not so great at poker. Apple will miss him. I know I do.

TWSS37
Jun 14, 2011, 12:32 PM
It's more like:

Them: "How much can you 'invest' in the company?"
Me: "I can put in 50 B"
Them: "50 Billion?"
Me: "No, 50 Bucks"

;)



But seriously, I'm afraid it might become a trend. You'll have to buy your CEO title.

Why? You planning on applying for a CEO position but you feel restricted by your inability to commit to a $50 million stock purchase?

Mattie Num Nums
Jun 14, 2011, 12:35 PM
We use to play poker on a weekly basis. Great Retail man. Not so great at poker. Apple will miss him. I know I do.

My first Apple beer bash and I go an spill my beer on Ron. He was really cool about it luckily! I had that time to go update my resume look in my face :eek:

rdowns
Jun 14, 2011, 12:36 PM
From 9to5Mac:

You can almost taste the sarcasm in the press statement from Apple:

“Ron is excited about this opportunity and we hope it goes well for him,” a spokesperson said. “We’ve got a great retail team in place and are actively recruiting for his replacement.”

JCPenny also released a statement with some interesting information:

As a demonstration of his confidence in J. C. Penney’s long-term potential, Mr. Johnson requested and has committed to make a personal investment of $50 million in the Company through the purchase, at fair market value, of 7 1/2-year warrants on 7.257 million shares ofJ. C. Penney Company stock. The warrants cannot be sold or hedged for the first six years of their term and have a strike price of $29.92, the closing price of the stock on the business day prior to Mr. Johnson’s commitment to purchase the warrants.


As JCP is up 12% on the hiring news, Johnson just made $6M on his first day. Not bad, but he’s still just went from the second biggest company in the world where he’d pull in double digit million dollar bonuses to a $7B company that sells unremarkable clothes.

Ouch, sounds like Jobs and the board aren't too happy about this.

Mattie Num Nums
Jun 14, 2011, 12:40 PM
From 9to5Mac:



Ouch, sounds like Jobs and the board aren't too happy about this.

Of course not. Jobs knows that the more of his original people leave the more Apple needs to scramble. Everyone credits Steve for Apple but its not Steve per se. It was Steves vision and hiring of the correct people to take on that vision. Ron leaving Apple is huge. Ron WAS Apple Retail. He was the reason it succeeded. Apple Retail was Steves Dream lived through Rons Vision.

QuarterSwede
Jun 14, 2011, 12:44 PM
"Do you want to sell t-shirts for the rest of your life, or do you want to stick with me and change the world?"
That's the quote I was thinking of. Pretty much sums up my thoughts.

Mattie Num Nums
Jun 14, 2011, 12:46 PM
That's the quote I was thinking of. Pretty much sums up my thoughts.

Ron is a CEO now. He is now Steves peer.

toph2toast
Jun 14, 2011, 12:49 PM
It seems like Apple was caught a bit off guard with this announcement. However, the Apple Retail stores have been a huge success for some time now so I think that area of the company will be just fine. JCP does need some major help though, so I'm looking forward to seeing what Ron does with the company. Good luck to him.

iSee
Jun 14, 2011, 12:52 PM
Well, he hit a home run with Apple Retail so it doesn't surprise me a retail company is ready to make him CEO.

I can't believe he's investing $50 million. Did he make that dough at Apple?!?

I wonder if the $50 million is actually just some form of stock options? I.e., suppose RJ agrees to take a portion of his compensation in the form of stock options as opposed to cash. That's sort-of like he invested the cash in the company.

Trauma1
Jun 14, 2011, 01:03 PM
he's using $50 million of his own money to buy warrants now, which will give him the option to sell stock at a certain price at a certain point in the future. As it stands now, if JCP stock does nothing for 7 years, and remains at its current price, he will make $150+ million on his initial $50 million investment.


That is incorrect. The $50M warrant will allow him to buy the stock six years from now at today's fixed price. As it stands, he has not purchased those 7.26 million shares. In six years time, he can buy them at $29.92 per share, no matter what price it will be trading at. Obviously, it is in his own personal financial interest, in addition to his professional interest, to make sure that in six years time, the stock will be trading higher than $29.92.

rdowns
Jun 14, 2011, 01:10 PM
Ron is a CEO now. He is now Steves peer.

Well, they may both be CEOs but JC Penny is a $7 billion company and Apple is a $300+ billion company.

Truffy
Jun 14, 2011, 01:11 PM
It's a word that's often over-used, but when Apple first went into retail several commentators thought they were misguided and heading for a fall (FWIW, I agreed with them from my position of total ignorance and irrelevance). They weren't and they didn't. Apple proved the pundits wrong, and that it is possible to fill retail stores with customers and make a profit with what is, in reality, a fairly limited product line.

The credit for that is Ron Johnson's.

Good luck to him (although, personally, I would've stayed with Apple!)

doug in albq
Jun 14, 2011, 01:25 PM
Steve, I have cleared my schedule, and I am now ready to take over for Ron at Apple...:eek:

Applebyter
Jun 14, 2011, 01:45 PM
as someone who works in the salon at jcp, i hope he does his homework on the salon business unlike the current one thats there now. those in charge of the salons need to learn a thing or two. they need to learn the definition of rebooking.

scott911
Jun 14, 2011, 02:05 PM
When a massive snow storm / blizzard struck the Buffalo, New York region, my wife and our brand new baby were stranded. She made out a JC Penney sign in distance.

Wife and baby spent the night and next day at Pennies. The staff made a crib out of box and pillows, and crafted diapers out of hand towels and the little plastic baggies used for hair coloring!

Good luck Mr. Johnson.

LLIBSETAG
Jun 14, 2011, 02:08 PM
do you want to sell dockers? Dockers! What-The-Huh?:confused:

Glideslope
Jun 14, 2011, 02:16 PM
Thanks Ron. Gonna miss you. The wife is thrilled you'll be at JC Penney.

There is a great deal of potential at JC Penney. :apple:

the8thark
Jun 14, 2011, 02:36 PM
I will be the first person to say Ron leaving Apple is actually good for Apple. Why?

No matter how good something is it will always eventually get stale. And no one person has an infinite supply of ideas. Sure Ron did great for Apple retail. But every so often you need to bring in new people to revitalise the place. New ideas, something fresh for the customer.

If you go into an Apple store and get good or very good customer service, then the customer complains cause they expect excellent service. And that's the problem with Apple. They need to change things up all the time. Always new, always innovative. That's how Apple makes it's cash. And someone else at the Apple retail helm can use what Ron put in place there and take it to even better heights. They could also screw it up too.

That's where Jobs and others some in. They need to hire the right kind of genius to replace Ron. And that's the big issue here. Hire the wrong person and screw it up and Apple could potentially lose it's good brand and other things.

So everyone who likes Apple should be hoping and praying Apple pick a good successor to Ron. And if they do this as we all hope they will, then there's nothing to worry about. Anyways a fresh face there with new ideas is always a good thing.

I'd rather be a VP of Apple then CEO of JCP. But it's all about the challenge for Ron. As good and coushy the Apple job was, it's just boring to him now. 10 years in a job is a long time. he wanted a new place for some excitement. And I don't blame the man.

So yeah Ron seems happy. JCP have a chance with Ron to be a better company. And Apple (if they pick the right Ron replacement) will have a nice shiny new retail VP with new and fresh ideas to move Apple retail to even better heights the Ron ever did.

So yeah there's no loosers here at all. Only winners.

Winners? Yeah ol Charlie Sheen would be proud.

street.cory
Jun 14, 2011, 03:00 PM
Yay for JCP Genius Bars!

cube
Jun 14, 2011, 03:07 PM
First thing I would do is rebrand the company to simply J.C.P. JC Penney has way to much baggage attached to the name. New short name, new CEO, new image. Its exactly the same formula Ron used at Target. He rebranded the entire company and its effect is still lasting and in effect today.

Java Community Process??

splashnader
Jun 14, 2011, 03:12 PM
Actually this makes perfect sense. The mans background is in retail. He worked at Target before he came to Apple. So this is pretty much just transitioning back to where he cut his teeth. The rules of retail and customer service don't change much, whether you go from selling computers to clothes or hot dogs on the corner of a street. As long as you keep the customer comfortable and make things simple you usually do well.

I hope he does well.

Squeak825
Jun 14, 2011, 03:43 PM
That is incorrect. The $50M warrant will allow him to buy the stock six years from now at today's fixed price. As it stands, he has not purchased those 7.26 million shares. In six years time, he can buy them at $29.92 per share, no matter what price it will be trading at. Obviously, it is in his own personal financial interest, in addition to his professional interest, to make sure that in six years time, the stock will be trading higher than $29.92.

Sorry, that is wrong. He is purchasing (with cash) $50M of warrants.

At the same time, he was also granted $50M of restricted stock, that will vest after the first of the year.


http://online.wsj.com/article/BT-CO-20110614-711403.html

In a press release describing the hiring of Ron Johnson, the departing Apple Inc. (AAPL) executive who led its successful retail operations for the past 11 years, J.C. Penney highlighted the $50 million that Johnson will pay to acquire warrants to buy nearly 7.3 million J.C. Penny shares. These warrants are exercisable in six years--or sooner if there is a change in control or if Johnson is terminated for any reason--have a strike price of $29.92 and will be worth money to Johnson at J.C. Penney prices above $36.81 per share.

Separately, in a filing with the Securities and Exchange Commission, J.C. Penney said it will grant Johnson nearly 1.66 million shares of restricted stock, which was worth $50 million as of Monday's closing price. With the 17% gain J.C. Penney shares received in Tuesday trading on the news, those 1.66 million shares are worth more than $58.5 million.

Those restricted shares vest in January next year, or less than three months after he officially takes the helm at the beginning of November and less than six months after he joins the J.C. Penney board of directors at the beginning of August. Meaning, he will have made his $50 million investment back, on paper at least, provided he isn't fired for cause soon after he starts and J.C. Penney shares don't fall below the $30.11-per-share grant valuation.

bobob
Jun 14, 2011, 03:56 PM
Yay for JCP Genius Bars!

My capri pants keep bunching up - - what can I do?

writingdevil
Jun 14, 2011, 04:02 PM
No, there were other employees ringing people up for other stuff like iPods and even iPhones, they simply wouldn't ring the iPad up until the guy who was supposed to wring more money out of me quit trying to wring more money out of the customer he was presently talking to.

One of the advantages to getting one on launch day is there are too many people to spend 15 minutes to upsell every one.

been going to apple stores for several years both in california and other states, as well as in europe when on a production there. never once had or observed or heard friends who buy there all the time, complain of anybody "wringing" or trying to "wring" more sales. some associates asked if i wanted apple care or mobile me, but never had any arm twisting.

bobr1952
Jun 14, 2011, 04:05 PM
Best wishes to Ron Johnson--and it certainly would seem the man loves a challenge. JC Penney is certainly an American icon but they have had lots of ups and downs over the past few--well decades. I remember doing a business paper--"JC Penney A New Marketing Strategy"--and that was in the early 80s. That particular strategy obviously didn't work.

writingdevil
Jun 14, 2011, 04:06 PM
I don't think leaving Apple is stupid, but I think joining JCP is. The success of Apple's retail stores can be attributed to Johnson insofar as he was responsible for retail operations but the overall success is as much timing as anything.

I understand the desire to lead an iconic brand from the top seat, but JCP? It won't happen. Apple got to pick its retail locations whereas JCP is where it is: low-image retail. I'm sure they'll be shuttering some locations and opening new ones ... but the challenges, while they may look exciting, are quite large. QUITE large.

"bad move"? from your perspective, but obviously not his. nobody knows how it will turn out, but i always root for someone (including me) who go for something that feels right after all the comparisons. never related at all to the people sitting on the fence telling all the players what they were doing wrong.

Trauma1
Jun 14, 2011, 04:08 PM
Sorry, that is wrong. He is purchasing (with cash) $50M of warrants.

At the same time, he was also granted $50M of restricted stock, that will vest after the first of the year.


http://online.wsj.com/article/BT-CO-20110614-711403.html

No, what I said was correct. He purchased $50M of warrants to allow him to buy the stock in the future at a price of $29.92. That is consistent of what is posted in the original article.
http://online.wsj.com/article/SB10001424052702303848104576385510781132614.html

It is also consistent of the quote you posted:
the $50 million that Johnson will pay to acquire warrants to buy nearly 7.3 million J.C. Penny shares

Paying for the warrants to buy the stock in the future.

Additionally, the $50M in restricted stock is a separate update to the story. I specifically searched for the words "restricted stock" in the original article and was surprised to see it was not there.

writingdevil
Jun 14, 2011, 04:10 PM
my capri pants keep bunching up - - what can i do?

genius!!!

Redbeard25
Jun 14, 2011, 04:23 PM
http://s01.imageupper.com/1_t/5/G1308086539131548_1.jpg (http://imageupper.com/i/?S0100010050011G1308086539131548)

firewood
Jun 14, 2011, 04:34 PM
"When you're at the top, it's hard to go anyplace but down".

Apple's stores are already at the top of the retail game. J.C.Pennys is in the black, but there's still a ton more potential to prove himself an even bigger business genius by moving JCP upscale and up-profit. At Apple, he's: "been there, done that" already.

There were a couple J.C.Penny's stores near Apple. One was torn down a few years back. Maybe he'll give me a reason to shop at the other one more often. It's a short walk from the future Apple spacecraft landing site.

Mattie Num Nums
Jun 14, 2011, 04:36 PM
Well, they may both be CEOs but JC Penny is a $7 billion company and Apple is a $300+ billion company.

Its always something.

Glideslope
Jun 14, 2011, 06:24 PM
Yay for JCP Genius Bars!

How long till iPad Catalog Orders in each Department? :cool:

toddybody
Jun 14, 2011, 07:20 PM
JCPenny's stock rose at the announcement?

Should be: "Apple Stock rose at the departure of someone who'd rather work at JCPenny's"

Squeak825
Jun 14, 2011, 07:31 PM
No, what I said was correct. He purchased $50M of warrants to allow him to buy the stock in the future at a price of $29.92. That is consistent of what is posted in the original article.
http://online.wsj.com/article/SB10001424052702303848104576385510781132614.html


Conceded -- miscommunication.

For some reason I thought you were saying he was *granted* the warrants, and thus did not have any cash outlay.

But you are right, he did buy the warrants, and that is what you said.

caspersoong
Jun 15, 2011, 03:22 AM
I didn't even realize jc penny still existed.

Me too. I just wonder what is going through Steve's mind about this issue and whether he spent hours persuading Ron Johnson.

sfjava
Jun 15, 2011, 12:25 PM
Well, he hit a home run with Apple Retail so it doesn't surprise me a retail company is ready to make him CEO.

I can't believe he's investing $50 million. Did he make that dough at Apple?!?

I wonder if the $50 million is actually just some form of stock options? I.e., suppose RJ agrees to take a portion of his compensation in the form of stock options as opposed to cash. That's sort-of like he invested the cash in the company.


He has already made more than $400 millions from Apple stock.