J.C. Penney CEO Ron Johnson is out and will be replaced by interim CEO Mike Ullman, who was the former chief executive.
The 54 year-old Johnson was hired in 2011 with plans to bring the retailer back from the dead, so to speak: he wanted to make Penney a store with a bright future, tending to more hip, of-the-moment fashions and markets.
He employed a strategy to sell products at low prices everyday, casting off from coupons and sales, numbers slumped, then plunged.
The holidays at J.C. Penney were dotted with disappointing sales and a fight with rival retailer Macy's over Martha Stewart and shareholder disappointment in the company's stock, which sank 6 percent, reports USA Today.
In addition, the shares went down 44 percent in 2012-last week, they dropped even lower by a whopping 25 percent.
The company also tweaked their fourth-quarter loss of $427 million dollars in February. This made them lose $985 million in total, a huge blow to their financials.
"The company underwent tremendous change as we began shifting our business from a promotional department store to a specialty department store," Penney explained in their proxy detailing the hard times. "Fiscal 2012 was tougher than expected."
Johnson officially stepped down Monday-the same statement announced he would be replaced by Ullman immediately.
Ellis Verdi, president of ad agency Devito/Verdi, told USA Today that an issue the company now faces is returning to the drawing board, coming up with a new brand, and marketing that brand. This will be especially hard for Penney, which is regarded as somewhat of a dinosaur.
"J.C. Penney at its best is still not great," he said. "That's the bigger issue. It's still an old brand."
Rumors are circling over who will fill Johnson's spot permanently, but Penney has made no pains to staunch them with an official statement.
This article is copyrighted by Travelers Today, the travel news leader
