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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Beware, hard Brexiteers - Ruth Davidson is coming for you

The Scottish Conservative leader is well-positioned to fight. 

Wanted: Charismatic leader with working-class roots and a populist touch who can take on the Brexiteers, including some in the government, and do so convincingly.

Enter Ruth Davidson. 

While many Tory MPs quietly share her opposition to a hard Brexit, those who dare to be loud tend to be backbenchers like Anna Soubry and Nicky Morgan. 

By contrast, the Scottish Conservative leader already has huge credibility for rebuilding her party north of the border. Her appearances in the last days of the EU referendum campaign made her a star in the south as well. And she has no qualms about making a joke at Boris Johnson’s expense

Speaking at the Institute of Directors on Monday, Davidson said Brexiteers like Nigel Farage should stop “needling” European leaders.

“I say to the Ukip politicians, when they chuckle and bray about the result in June, grow up,” she declared. “Let us show a bit more respect for these European neighbours and allies.”

Davidson is particularly concerned that Brexiteers underestimate the deeply emotional and political response of other EU nations. 

The negotiations will be 27 to 1, she pointed out: “I would suggest that macho, beer swilling, posturing at the golf club bar isn’t going to get us anywhere.”

At a time when free trade is increasingly a dirty word, Davidson is also striking in her defence of the single market. As a child, she recalls, every plate of food on the table was there because her father, a self-made businessman, had "made stuff and sold it abroad". 

She attacked the Daily Mail for its front cover branding the judges who ruled against the government’s bid to trigger Article 50 “enemies of the people”. 

When the headline was published, Theresa May and Cabinet ministers stressed the freedom of the press. By contrast, Davidson, a former journalist, said that to undermine “the guardians of our democracy” in this way was “an utter disgrace”. 

Davidson might have chosen Ukip and the Daily Mail to skewer, but her attacks could apply to certain Brexiteers in her party as well. 

When The Staggers enquired whether this included the Italy-baiting Foreign Secretary Johnson, she launched a somewhat muted defence.

Saying she was “surprised by the way Boris has taken to the job”, she added: “To be honest, when you have got such a big thing happening and when you have a team in place that has been doing the preparatory work, it doesn’t make sense to reshuffle the benches."

Nevertheless, despite her outsider role, the team matters to Davidson. Part of her electoral success in Scotland is down the way she has capitalised on the anti-independence feeling after the Scottish referendum. If the UK heads for a hard Brexit, she too will have to fend off accusations that her party is the party of division. 

Indeed, for all her jibes at the Brexiteers, Davidson has a serious message. Since the EU referendum, she is “beginning to see embryos of where Scotland has gone post-referendum”. And, she warned: “I do not think we want that division.”

 

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