Posted by Dale Buss on April 8, 2013 07:12 PM
Ron Johnson has been ousted as CEO of JCPenney as the retailer's board of directors voted on Monday to turn to his predecessor to pull the company out of the death spiral (it lost $4.3 billion in sales last year) on Johnson's watch, rather than give the former Target executive and Apple retail head the extra time he wanted to see his radical vision through to fruition.
Mike Ullman, who had been CEO of JCPenney until 2011, before Johnson, is returning to take the helm again at least for the time being, according to a JCPenney press release:
"The Board of Directors of J.C. Penney Company, Inc. today announced that Myron E. (Mike) Ullman, III has rejoined the Company as Chief Executive Officer, effective immediately. He has also been elected to the Board of Directors. Mr. Ullman is a highly accomplished retail industry executive, who served as CEO of jcpenney until late 2011. He succeeds Ron Johnson, who is stepping down and leaving the Company."
The stock market appreciated the move, which comes on the same day that JCPenney resumed its courtroom clash with Macy's in Manhattan over rights to field the Martha Stewart product lines that Johnson maintained would be crucial to turning around JCPenney's fortunes.Continue reading...
Posted by Sheila Shayon on March 28, 2013 03:25 PM
J.C. Penney recently resumed its marketing strategy of raising prices, then discounting them on its private brands which include St. John's Bay, jcp and Stafford and Arizona, which generate more than half of the company’s overall revenue.
"While our prices continue to represent a tremendous value every day, we now understand that customers are motivated by promotions and prefer to receive discounts through sales and coupons applied at the register," JCP spokeswoman Daphne Avila told Reuters.
That means an Arizona crewneck T-shirt with an "everyday" price of $5 now has a $6 pricetag to accommodate a better markdown and arrive at the same price. The move is an effort to reverse a 25 percent drop in fiscal year sales. The practice is common in retail and used by rivals Macy’s and Kohl's.
“The company said that it has now realized that coupons and sales attract more customers and that this is the market trend,” writes Nautilus Investment Strategies on the reversal of CEO Ron Johnson’s earlier "no sale" stance. “Market analysts feel that at this point no strategy change is going to change the fate of the company as a large number of customers have already gravitated towards other retailers such as Target and Macy’s.”Continue reading...
Posted by Mark J. Miller on March 19, 2013 02:37 PM
Hipsterrific U.S. beer brand Pabst Blue Ribbon and surfing powerhouse O’Neill could have had a legal battle, but the chill brands instead decided to pound it out and make some money together.
O’Neill turned out a new surf look recently that caused someone in the Pabst legal department to give them a call to note that O’Neill was getting a little too close for comfort to the logo for Pabst, which is owned by the enterprising bunch at Metropoulos & Co., the company that just linked up with Apollo Global Management to buy the rights to Twinkies for $410 million.
But instead of a brouhaha, the two companies decided (no doubt over a cold one) to chill out and partner on a co-branded line of clothing.Continue reading...
Posted by Mark J. Miller on March 15, 2013 02:28 PM
You want to make Reddit sensation Grumpy Cat really grumpy? Try using her name on a product without prior authorization.
The owners of the cat that took social media by storm five months ago have filed for a trademark for the name "Grumpy Cat" as well as the cat’s likeness. After all, their little kitty, whose name is actually Tardar Sauce, has since gotten her own website, Facebook fan page, retail space, an appearance on the Today Show and her own commercial for Friskies cat food, according to SmallBizTrends.com.Continue reading...
license to thrill
Posted by Mark J. Miller on March 8, 2013 11:01 AM
With its most famous resident putting a "For Sale" sign in her front yard, the city of Malibu, California, is looking for new ways to attract tourists and boost income.
CNBC reports that Malibu has signed a deal with Excel Corp. in order to start “licensing apparel, active wear, and even things like sunglasses, watches, and volleyballs” with the extra money going to “fund special projects.”
The city is forking over $90,000 for Excel to design a logo and find licensees.Continue reading...
Posted by Mark J. Miller on March 7, 2013 06:17 PM
America has spent more time working or looking for jobs in recent years and it’s put the hurt on some recreational activities. That’s been quite a blow, apparently, to Quiksilver, the brand that’s long been synonymous with surfing, skateboarding and snowboarding.
Andy Mooney, who took over as CEO in January after running the show at Disney Consumer products and spending two decades at Nike, got to share the bad news with the world Thursday as the company reported not-so-great quarterly earnings. Overall revenues for the first quarter, which ended January 31, were down 3 percent to $431 million from $450 million the previous year. American net revenues dropped 9 percent in the quarter to $186 million, down from $205 million. The only major plus for the quarter was that e-commerce sales had gone up 39 percent to $33 million. Continue reading...
Posted by Mark J. Miller on March 6, 2013 07:07 PM
Marilyn Monroe died back in 1962 with eight milligrams of chloral hydrate and 4.5 milligrams of Nembutal floating around in her system. The 36-year-old former foster child’s death was listed as a “probable suicide” by the L.A. County coroner.
While Monroe’s final years weren’t her best, she had already seared her image onto the collective American culture with her work in such classic films as Gentlemen Prefer Blondes, The Seven-Year Itch and Some Like It Hot, not to mention her sultry birthday serenade to President John F. Kennedy, who also happens to be the last person she called on the phone.
Like Monroe’s original name of Norma Jean Baker, most folks have pretty much forgotten about Monroe’s bad times and her image has become a symbol of sex and glamour. That’s been a lucky gift for Anna Strasburg, the wife of deceased father of method acting Lee Strasburg, the recipient of all Monroe's worldly goods.
Strasberg spent years taking various entities to court so she would clearly have the rights to Monroe’s image when it comes to commercial items. She cashed in and sold the rights to Jamie Salter’s Authentic Brands Group LLC and media company Neca LLC, according to Bloomberg. Salter, meanwhile, is already raking in cash every time any Bob Marley-related item causes a cash register to ring.
Don’t worry about the septuagenarian Strasberg. She stayed on as a minority partner in the company that planned to sell Monroe-branded makeup, lingerie and other products. The latest deal for the company has Macy’s launching a new line of Monroe-inspired clothing on March 15th, following the opening of the first Marilyn Monroe cafe (in Oakville, Canada) in November.Continue reading...
Posted by Dale Buss on March 5, 2013 06:36 PM
One more day of Martha Stewart on the stand in the Macy's-JCPenney trial over her brand and wares, and neither retailer may not want her anymore.
Testimony by the 71-year-old Diva of Domesticity on Tuesday at times sounded like something from Les Miserables or A Tale of Two Cities, leaving her views of the differences between Penney's and Macy's customers abundantly clear.
Penney customers "have 30 percent less income than Macy's shoppers," she said near the end of her testimony, according to the Twitter coverage from the courtroom by Ashley Lutz, who covers retail for Business Insider. "They're going to buy different things."
Not long after, a Macy's attorney in the landmark court case called her out for saying that JCP has different customers than Macy's, the lawyer noting that the Macy's contract prohibited her brand from collaborating with "downscale" partners, presumably because it would tarnish the value of the Stewart marque for Macy's.Continue reading...