Retail Chief Ron Johnson Departs Apple for J.C. Penney, No Successor Named

[SockRolid]

Originally Posted by mayhone1

Apple for JC penny, really?

Ron Johnson was the SVP of retail at Apple. Did he have any chance at all of becoming CEO of Apple? No. So when JC Penny asked him to become CEO, how could he say no?

[vitzr]

For a company like Apple this is a normal amount of churn. History reveals that this type of thing is commonplace when there's a change of CEO.

[GorgonPhone]

Originally Posted by mayhone1

Apple for JC penny, really?

yup folks are jumping ship.. steves loyalists are leaving and this is where we will see big change in apple...

[MacAddict1978]

Originally Posted by basesloaded190

Do you want to sell ladies clothes for the rest of your life, or stay with apple and change the world?

He probably just quadrupled his salary, if not more, and not even counting his other compensation. A CEO title is a bit more ambitious, and he could never hold that at Apple. Also, he's in the retail end, and that was his career. JC Penny needs much love in their stores, and this is the guy who made Target the Cheap Chic retailer, and made the Apple stores what they are. (Anyone ever see pictures of the first Apple stores before this guy came on board? NOT impressive.)


I love the old analyst quote in the main article. Obviously he was wrong, be he was so off base. Comparing Gateway stores? Gateway stores didn't really sell anything! A customer still had to do a build to order and have it shipped to the store or their home. They more really just show rooms. 90% of the people that went to a Gateway store ordered online, not from the store. This was the business model. Gateway stores went away because their sales as a company began to dive. Also, Apple has never sold a product for 10% margin.
Nor will they.

Analysts are the most clueless thing, and then people actually listen to them.

[Trauma1]

Originally Posted by mikekey

Wow, they must be paying him really well to leave Apple. That or he felt there was no more innovating to be done at Apples Stores.

http://online.wsj.com/article/SB1000...781132614.html

JCP is compensating him for the equity he leaves behind at his old company.

First reported back in June, Johnson is putting up $50 million of his own capital to buy warrants for $29.92 per share of JCP, to be exercised in six-years. The warrants are $6.89 a share, so if the stock isn't well above $36.81 six years from now, he is at a loss.

This is standard practice for a changeover like this. It shows the new CEO has faith in the company and in himself, and is also a personal incentive to be even more successful.

[carlgo]

I didn't even know JCP still existed. How about something like a giant Apple store with transparent escalators and such selling the best of everything. Nothing but the best of every device, appliance, clothing, shoes, sporting goods, furniture, tools, bicycles, etc. And a great food court with a really good menu. With Jobs gone, the smell of bacon would be gently fanned throughout.

Maybe an auto display where exotic cars and bikes would be artfully displayed, rotating between the stores.

Who wouldn't go there just to see all the best stuff, one-stop upscale.

[nylonsteel]

re original article
I for one - would be very impressed if rj could turn jc penny around - into a relevant reatil chain once more

[the8thark]

Originally Posted by KnightWRX

I hope he actually fixes the retail experience. It's a nightmare currently. Trying to actually go into an Apple store is an exercise in frustration.

So Apple is a victim of it's own success?

[thejadedmonkey]

Originally Posted by ryanmcv

Only $1.2 million/year for rent? I hardly doubt that would put much of a dent in Apple's pockets.

Edit: Just saw the word "each" after that sentence. Okay, that is a lot of money.

Actually, when Apple opened up their first retail stores, 1.2m was about 80% of their value

[KnightWRX]

Originally Posted by the8thark

So Apple is a victim of it's own success?

Marketing, thy name is the8thark. I remember a decade ago when I was working customer service (back in my college days) for the cable company that was in the process of introducing cable access to the Internet. We always claimed "We're a victim of our own success!" when customers would say that 3 hours of wait time on hold was no acceptable.

And frankly you know what ? It was just that we had poor planning, lacked proper service tools and most of the staff was clueless on how our systems (internal and customer) worked.

Apple's retail woes are as much their own doing as it is about too many people coming off the street.

[JRoDDz]

Originally Posted by basesloaded190

Do you want to sell ladies clothes for the rest of your life, or stay with apple and change the world?

He looks like the type thats into ladies clothes.

[Nostromo]

I'm always wondering how much executives actually identify with what they do, and how much they are just aparatchiks who will just perform any taks that they are told to do.

J C Penney... Why not Walmart? Or McDonalds?

[thomaus]

Originally Posted by slrandall

Embarrassing to be Goldstein right about now.

He seems to have disappeared off the Internets. Except for the quote with the brilliant insight.

[MightyMac007]

Originally Posted by nylonsteel

re original article
I for one - would be very impressed if rj could turn jc penny around - into a relevant reatil chain once more

Agreed. I can't remember the last time I stepped in JCP. Maybe 15 years ago, and even then it didn't feel right.

[mgkimsal]

Originally Posted by KnightWRX

And frankly you know what ? It was just that we had poor planning, lacked proper service tools and most of the staff was clueless on how our systems (internal and customer) worked.

Apple's retail woes are as much their own doing as it is about too many people coming off the street.

I think the move to roll out 'self-service order and pickup' at their stores is a move in the right direction. For all the hand-holding that goes on at Apple stores (generally a good thing) there's many people who just need to get something and get out, but you have to wait for the checkout people way too often at certain times of the day.

I think Apple realizes the traffic patterns and trends at their stores, and will figure out ways to make it better.

[World Citizen]

Oke, where did this margin thing come from?

Its known that Apple's first goal with there stores is not to sell things, but to relate with the costumer. It even says so in the contract of the employes.

Apple will loose mony with the stores.. He didn't even figure out that the development costs of the store is a totally billion dollar loss.. that they will never see back. You know how much time and development and research is getting in to these stores... ?

Idiot.

edit: he is obviously not in "the loop" of Jobs his ideas ...

[erzhik]

Originally Posted by mayhone1

Apple for JC penny, really?

Yes really. Why wouldn't he? It's a CEO position, therefore much much bigger paycheck to support his family. JC Penny may sound not as upscale as Apple but they make truckload of money.

[Antares]

Originally Posted by mikekey

But does anyone still shop at department stores?

Where else do you shop for clothes, then, other than a deparment store? Online? a junky place like Walmart? Clothes you still need to buy in a physical store to get the best fit. Where else can you go?

I'm not talking about specialty stores like GAP, Burbury, Old Navy, etc. Those are good once in a while as a supplement to your wardrobe. But where else can you buy your regular clothes and accessories other than a department store?

Edit: JCP is where I buy most of my clothes. I can't imagine where else I would go other than Sears....where I do also buy some clothes.

[gorgeousninja]

Originally Posted by KnightWRX

I hope he actually fixes the retail experience. It's a nightmare currently. Trying to actually go into an Apple store is an exercise in frustration.

Look for the big opening called a door it works really well for the rest of us.

[GovtLawyer]

Originally Posted by KnightWRX

I hope he actually fixes the retail experience. It's a nightmare currently. Trying to actually go into an Apple store is an exercise in frustration.

I have no idea what you're talking about. While the Apple stores are usually crowded; going in, finding the product and then finding someone to help me has always been a great experience. I live in Manhattan and the stores get a lot of traffic. Can you be more specific as to where the store is and what is nightmarish?

Perhaps you only go there on days they introduce new products.

[KnightWRX]

Originally Posted by GovtLawyer

I have no idea what you're talking about. While the Apple stores are usually crowded; going in, finding the product and then finding someone to help me has always been a great experience. I live in Manhattan and the stores get a lot of traffic. Can you be more specific as to where the store is and what is nightmarish?

Perhaps you only go there on days they introduce new products.

In Montreal, St-Catherine store, walking in knowing what you want and having to mope around for 30 minutes trying to get someone to accept your credit card so you can get out while all the shirts are discussing various tidbits with Facebook browsers that aren't buying anything.

[MacAudioPro]

Originally Posted by mayhone1

Apple for JC penny, really?

Yeah, how dare this man attempt to better himself and accept a CEO position with a major US corporation. I personally always look for employees who are satisfied with what they have and have no ambition to advance!

I can tell you agree.....

[28monkeys]

Sound like a loser, really.

[Scoth]

He spoke at my school last year, seemed like a really nice guy. Hoping the best for him.

[anotonin]

I wish him well. He has done a great job at Apple, hopefully he also does great things with JC Penney.

Good luck, Sir Johnson.