Classing up the joint wasn't Johnson's downfall; not understanding the core JCP customer was. Johnson presumed all customers are created equally, but they are not. JCP customers are classic value oriented and (phony) sales and (fake) coupons make them warm and fuzzy.
Johnson got rid of those for the most part in trade for lower everyday pricing. That plus upscaling the interiors gave JCP customers the feeling they were paying more even though they were not while it didn't attract fashion customers that would have never walked into JCP...and still won't.
Had Johnson done either the value pricing OR the new interiors he'd probably still have a job.
The JCP model they've been "successful" with is not one that is likely to last, which is what Ron Johnson understood. It's not like they hired Johnson because things were all rosy either - they were in trouble then and they're still in trouble.
Blaming him for not successfully classing up their current customer was short sighted at best. The old adage that it takes a lot to turn a battleship is true for both JCP and their customer base. The customers who demand the 100's of "sales" per year so they feel like they're getting a deal on product that was overpriced to begin with, need a better education. I remember learning about JCP and their bogus sales back when I was in grade school (40 years ago), when I asked my mom how they could offer gold jewelry at 50-80% off and make any money.
My guess is JCP will keep doing what they've done all along, lose stock value, lose customers and start shutting more and more stores until they cease to exist. They have a hard enough time competing with Kohl's, who simply did a better version of JCP than JCP, sales and product wise. And Target's success is pushing Walmart to be better too, which further erodes JCP's base customer appeal.
It's really crazy how much the retail landscape has changed over the years. I remember when shopping meant going to Woolworth's, Ben Franklin, JCP and Sears - then Kmart came around, killing off Woolworth's and Ben Franklin was killed by Walmart. I'm guessing we'll see JCP, Sears / Kmart gone within the next decade, maybe less.