by Christopher Freeburn | June 19, 2012 9:08 am
Troubled retailer J.C. Penney (NYSE:JCP) is facing a new management change. The company announced late Monday that President Michael Francis, who joined the chain just eight months ago, is leaving.
Penney didn’t disclose the reason behind the exit. However, the former Target (NYSE:TGT) executive, recruited to help the retailer redefine its brand after a series of missteps, had overseen the promotion of Penney’s “no sales” campaign.
The idea of ditching periodic “sales” was new CEO Ron Johnson’s idea, but it fell flat with consumers — and the chain’s sales plummeted last quarter, the Associated Press noted.
Penney has since modified the strategy to include “Best Price Friday” sales as well as a month-long sales on certain products and heavy promotion of its “everyday low prices” strategy.
In a statement, Penney said CEO Johnson would take control of the retailer’s merchandising and promotional campaigns.
Analysts cited by the AP said the “no sales” campaign had failed and Francis had been cast as the “fall guy.” The ultimate responsibility for Penney’s poor results lay with Johnson, the analysts said.
Shares of J.C. Penney fell more than 5% in pre-market trading on Monday.
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