Johnson's resounding failure at JC Penney proves he got lucky at Apple

JC Penney chief sacked.

 

It’s back to business as usual at JC Penney this week with the departure of Apple golden boy Ron Johnson and the re-instalment of its previous CEO Mike Ullman.

Sadly for this US national institution business as usual means sliding profits and sacking employees as they continue down the long road to insolvency and obscurity.  

The markets reacted comically to the decision, sending up a cheer as the news of the ex-retail VP of Apple was relieved of his post, with shares growing by 10 per cent, and then dropping back down when it was announced who was to replace him.

Johnson joined JC Penney fresh from helping to turn Apple into the most profitable company in the world but he failed to bring this same Apple magic to the department store.

It’s almost as if people bought Apple products because everyone thought they were cool to have, not because of the store locations and opening hours. 

Indeed, people would still have bought Apple stuff even if they could only get it from the top of some mountain in the middle of nowhere on the night of a full moon. In fact, the launch day queues might have been even longer.

As he has proved from his resounding failure at JC Penney, Johnson got lucky at Apple. If his strategy at Apple as VP of retail operations would have been to lock the doors on all the outlets and turned out the lights.

I’m not trying to deny Johnson did a good job while he was at Apple, the Apple Stores around the world are a landmark in any city that’s lucky enough to have them. The point is that a child could have held the position and still sold a bazillion iPods and Macbooks since the turn of the century.

Johnson got the JC Penney job because of his successful stint at Apple. Just because someone held a job at Apple in the time of the second coming of Jobs doesn’t automatically mean they’ll be able to sell anything to anybody.

JC Penney (like a lot of other companies) needs to stop trying to emulate Apple as a way to success and try something of their own. Admittedly, for a business model as out-dated as a department store this is far easier said than done.

JP Penney. Photograph: Getty Images

Billy Bambrough writes for Retail Banker International at VRL financial news.
 

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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