Note JC Penney (JCP.N), consumers: meet the new boss. The same old club.
Struggling department store chain with the Chief Executive Ron Johnson, who did not win the consumers and investors with his everyday low price strategy and rehiring former CEO Mike Ullman to revitalize the company parted ways.
 
 
JC Penney shares rose nearly 11% in after-hours trading Johnson CNBC report, but then fell by 7%, after the company disclosed the full details of the move, including Ullman return.
Analyst at BTIG of, William Frohnhoefer said certain investors beat the drum need to change, and Johnson is not the guy, he believes: "Ullmann's criticism will not ask.
"Investors are concerned about Ullman," said Frohnhoefer Penney sales gap decline, on a relative basis to other retailers, while he at the helm. "
Johnson, former chief of Apple's retail unit, trying to reverse the transformation Penney department stores and replace its traditional coupons and sales activities and everyday low prices. But sales fell 25% last year, the company must now try to attract consumers, it lost.
Johnson's resignation rumors for several months, but as something of a shock, Ullman returns to consider how he has publicly condemned Penney's largest shareholder, hedge fund manager Bill Ackman leadership.
Ackerman of Pershing Square briefing in May 2012, Penney Company, known as the "long-term mismanagement" and pointed out that the decline in the stock of Ullman's tenure. Its stock price fell about 15%, from 2005 to 2011, any CEO. Nevertheless, Ullman left, the stock is twice the price.
Penney's chairman Thomas Engibous said in a statement, Ullman "positioning to quickly analyze the situation, and take measures to improve the company's performance."
At least there is a retail experts say, Ullman returns may presage the retailer's sales.
"Ullmann ... he did not really go out on the wings of glory, and now they bring the guy back?, Managing Director and Head of Retail Group, who said:" Honestly, I think nobody want to work, Brian Jimmy Goff the Hedgeye risk management.
"The only reason why I named CEO Ullman is actually a temporary fix, simply because he did not know the people inside so many companies, they have their faith, he can calm waters, he can help lipstick pigs for sale, "Mr Goff said.
"Disaster"
Johnson was originally seen as a positive change from Ullman, the stock rose nearly 18 percent in June 2011, the day he announced the hiring. But sales are down 25% in the first year of his plan to reshape the department store chain.
? $ 15.12 in after-hours trading, JC Penney Company, has been closed regular trading up 2.7% year-on-year decline of 4.7% of the shares.
Ackerman last week - carefully selected Johnson led the company - CEO, said "big mistake" has been made, the effects of these errors has been "very close" to disaster retailers.
The company has now brought back the old pricing strategy, to try to bring consumers. The executives acknowledged that their first challenge is to get a chain and old customers back to the store.
Ullman basic annual salary of $ 1 million, down from $ 1.5 million a year, Johnson received. The company said it did not enter into an employment agreement with him.
Last week, Penny Johnson retailer's weak 2012 results after the stock awards or bonuses. The company also said that Johnson will receive less than $ 150,000 bales, if he resigned or was fired.
"The positive thing is, (Ullmann) companies and organizations - not someone trying to learn it from scratch - but he is also the one who left Penney Company in this case, who brought it to the point that they feel they need a a whole new way, "Casey said, the C?te international strategy consultant, co-founder Gersch.
"The risks are they correct and Ron made everything thrown out."
 
 



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