As further proof that the wacky leadership of JC Penney CEO Ron Johnson isn’t working, the company posted more losses when it released it’s second quarter sales figures. Retail sales previously declined by 20% in the first quarter report, and the second quarterly report had sales decline enough that the company lost $147 million compared to a $14 million profit last year for the second quarter.
Ron Johnson made a 90 minute address meant to calm jittery nerves of investors who witnessed their stock values decline in pretrading, but the stock rebounded in the afternoon as for some reason, some investors actually believe that this guy knows what he’s doing.
Johnson is planning to completely revamp the company, including the store inventory the business stocks in it’s stores. However, this weekend’s brilliant JC Penney plan is to offer kids free haircuts, as other competing stores offer actual sales to get kids and parents in who want an early start on back to school shopping.
while kids getting free “back to school” haircuts may influence some parents to spend some time hanging around JC Penney stores at the shopping malls this weekend, it still might be safe to say that most parents will spend more time looking for bargains at other stores, trying to make their recession dollars stretch a little further.
Hey, the company may be losing money under Johnson’s leadership, the haircuts are free!