Marc Rosen, CEO of JCPenney. At the retailer’s Stonebriar Center in Frisco, Texas. Photo by Nancy Newberry from Fortune
good morning. luck Senior Writer Phil Wahba is here.
How much corporate revitalization is when the CEO decides to let the plan take root by being good at the basics of the company instead of trying to dazzle everyone with flashy moves. It’s amazing how much traction you can get.Take a JC penny. In the decade leading up to filing for bankruptcy protection in 2020, department store reinvention after reinvention did nothing to stop years of declining sales and eroding market share.
Remember when Ron Johnson of Apple fame tried to make Penny cool with a more sophisticated brand and ditched coupons? ), even though the core shopper was a suburban mother.
In a column published this morning, JC Penney CEO Marc Rosen explained his new plan and why he thinks it will finally work. Rosen, who spent years at Levi Strauss and Walmart before joining Penny as CEO in 2021, says that unless he has a firm foundation in the basics like having the latest electronic money, any restructuring plan will be a cool influencer. no collaborations, nor new beauty brands can work for Penny. Meet customer demand and build supply chain and data analytics capabilities to keep shelves stocked.
“In the past, I’ve seen companies chase glowing objects to find a ‘big bang’ solution,” he told me. “This time, I’m saying we have to fix the foundation.”
The same philosophy works wonders at other companies. In retail, we’re seeing bookstore Barnes & Noble thriving again by focusing on selling books rather than selling trinkets or creating e-readers. Target taught us the same lesson at a major turning point in 2017.
Of course, it helps Rosen that Penny is privately held. So while he tends to fix the basics, he doesn’t have to deal with the possible pressure of Wall Street and activist investors.
There are first signs that Mr. Rosen’s turnaround is paying off. Simon Property, one of his owners at Penney Co., said last month that despite his group facing a slowdown in consumer spending in his two main categories of apparel and home goods, Penney Co. “It’s incredibly profitable,” he said. Penny generated about $9 billion in sales last year and operates 665 stores, about half the size it was a decade ago. But Rosen said business is now stable.
Some of Rosen’s repair jobs have convinced employees who have gone through countless layoffs and years of declining sales. met with store-level employees and middle management to boost morale and Penney finally set out to come up with a convincing plan and reassure employees that they were needed. “One of the really nice surprises about him is the strength of the culture. We have a really dedicated team,” said Rosen.
You can read the full text here.
AI personal assistant
According to Bill Gates, the impact of AI on the workplace may not be as significant as many fear. Instead, Gates sees his AI as a “co-pilot” that makes the workplace more efficient by helping with tasks like composing emails and managing your inbox. luck
Disney Gay Rights Summit
The Walt Disney Company launched an LGBTQ+ rights campaign in Central Florida this September, following Gov. Host an Out & Equal Workplace Summit to promote The event is sponsored by Apple, McDonald’s, Amazon and more and is expected to attract over 5,000 attendees. miami herald
Domino gives up Italy
A Milan-based judge has liquidated Domino’s Pizza’s Italian franchise after the business struggled to attract customers. was shown to be able to recover 5% of its exposure through a court-ordered liquidation. bloomberg
around the water cooler
TikTok CEO tries to introduce himself to America, but former Facebook intern’s charm attack faces hostile audience Andrea Guzman
Moderna CEO defends decision to more than quadruple price of COVID vaccine, charging around $130 at Senate hearings Tom Murphy and Associated Press
Silicon Valley Bank may have blown bank regulation introduced at the depths of the Great Depression Will Daniel
Nvidia and Adobe think they may have settled generative AI copyright issues David Mayer
The depressed housing market is at a critical juncture – aggressive homebuilder incentives and price cuts are at work Lance Lambert
This issue of CEO Daily was edited by Jackson Fordyce.