Despite plummeting sales and mounting losses, J.C. Penney (NYSE:JCP) says its CEO isn’t leaving the company.
Rumors that former Apple (NASDAQ:AAPL) executive Ron Johnson might resign sent shares of the struggling store chain up about 5% on Tuesday. However, a company spokesperson shot down the rumors and some analysts say that firing Johnson now could disrupt the company’s retail strategy, which many vendors have already adapted to, Reuters noted.
Investors appeared unhappy that Johnson will be staying on as CEO, at least for now. Shares of J.C. Penney fell more than 3% in Wednesday morning trading.
Johnson attempted to move the department store chain away from periodic sales, promoting “everyday low prices” instead. The move fell flat with shoppers, who abandoned the store in droves. The company has moved back to promoting sales.
Last month, the company said fourth-quarter sales dropped a stunning 25%, compared to the prior year. The chain lost a record $552 million, prompting calls for Johnson’s ouster after more than year as CEO.
Johnson’s latest move is to establish boutique shops within its stores, featuring products from popular designers and brands.