5 Step Plan to Save JC Penney
1. √ Fire CEO Ron Johnson
2. √ Re-Hire previous CEO
3. √ Hire Blackstone to sort out financial options
4. ? Get customers back
5. ? Move forward
In the last few days JC Penney has fired the hotshot CEO they recruited from Apple a year and a half ago, replaced him with their previous CEO, and hired Blackstone Group's financial advisory team to sort out their financial options. Yet to be announced is their plan to win back all the customers Penney's lost when Johnson quit having sales and went to his “Fair and Square” pricing policy. Ultimately, Penney's will need to find a way to grow their business by attracting new customers.
It's going to be a challenge, but JC Penney did it before. Years ago Penney's gave up trying to compete as a full-line department store with furniture, appliances, hardware, auto, etc., and decided to focus on soft-goods for the middle class with clothing, linens, etc. It proved to be a very good decision for them at the time.
Who knows what will work for JC Penney in today's turbulent retail environment? What would you do?