Print ads are dead? Mobile advertising and digital coupons are the future?
That may not be true at JC Penney in the wake of Ron Johnson’s dismissal as CEO.
AdAge confirms today that JC Penney will reverse Johnson’s strategy of reducing discounts and put traditional coupon advertising in newspapers again.
Mr. Johnson, who was replaced by Myron Ullman on Monday, implemented a pricing strategy that eliminated almost all of the company’s discounts and promotions in favor of everyday low prices. Shoppers shunned the department store chain, and sales sank 25% last year.
Johnson’s plan, Friday’s report reiterates, led to a net loss of $985 million last year.
This past Monday, CNBC reported that the former Apple executive who left Cupertino in order to become CEO of JC Penney is now on his way out at JC Penney.
“JC Penney CEO Ron Johnson is out and Mike Ullman will rejoin the company as CEO,” the cable news giant reported, adding that JC Penney posted losses in each quarter under Johnson’s tenure.
Ullman – who was CEO at the retailer from 2004 to 2011 – was recently approached by the board and asked to return in hopes of helping the “troubled retailer” regain its lost footing.
“We are fortunate to have someone with Mike’s proven experience and leadership abilities to take the reins at the company at this important time,” Thomas Engibous, chairman of the company’s board, said in a statement. “He is well-positioned to quickly analyze the situation JC Penney faces and take steps to improve the company’s performance.”
For the time being, do you think JC Penney is making the right decision by returning to newspaper advertising and undoing that which was done during Johnson’s tenure as CEO?