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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We're running out of time to stop a hard Brexit - and the consequences are terrifying

Liam Fox has nothing to say and Labour has thrown the towel in. 

Another day goes past, and still we’re no clearer to finding out what Brexit really means. Today secretary of state for international trade, Liam Fox, was expected to use a speech to the World Trade Organisation to announce that the UK is on course to leave the EU’s single market, as reported earlier this week. But in a humiliating climb-down, he ended up saying very little at all except for vague platitudes about the UK being in favour of free trade.

At a moment when the business community is desperate for details about our future trading arrangements, the International Trade Secretary is saying one thing to the papers and another to our economic partners abroad. Not content with insulting British businesses by calling them fat and lazy, it seems Fox now wants to confuse them as well.

The Tory Government’s failure to spell out what Brexit really means is deeply damaging for our economy, jobs and global reputation. British industry is crying out for direction and for certainty about what lies ahead. Manufacturers and small businesses who rely on trade with Europe want to know whether Britain’s membership of the single market will be preserved. EU citizens living in Britain and all the UK nationals living in Europe want to know whether their right to free movement will be secured. But instead we have endless dithering from Theresa May and bitter divisions between the leading Brexiteers.

Meanwhile the Labour party appears to have thrown in the towel on Europe. This week, Labour chose not to even debate Brexit at their conference, while John McDonnell appeared to confirm he will not fight for Britain’s membership of the single market. And the re-election of Jeremy Corbyn, who hardly lifted a finger to keep us in Europe during the referendum, confirms the party is not set to change course any time soon.

That is not good enough. It’s clear a hard Brexit would hit the most deprived parts of Britain the hardest, decimating manufacturing in sectors like the car industry on which so many skilled jobs rely. The approach of the diehard eurosceptics would mean years of damaging uncertainty and barriers to trade with our biggest trading partners. While the likes of Liam Fox and boris Johnson would be busy travelling the world cobbling together trade deals from scratch, it would be communities back home who pay the price.

We are running out of time to stop a hard Brexit. Britain needs a strong, united opposition to this Tory Brexit Government, one that will fight for our membership of the single market and the jobs that depend on it. If Labour doesn’t fill this gap, the Liberal Democrats will.

Tim Farron is leader of the Liberal Democrats.