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PMG Venture Group Executive Director Kristin Bentz on whether JCPenney can survive the Martha Stewart and Macy’s drama.
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I well the JC Penney stock that continues now I got CEO Ron Johnson back on the stand today he's testifying in his bitter battle with rival Macy's over the right to sell Martha Stewart Living products.
And that's is the latest problem and the embattled CEO wounds transformational plans for the department store chain haven't really worked out all that well.
JC Penney reported earnings way below analysts' expectation last week in same store sales down a whopping 32%.
From the previous quarter.
Even a lot of people ask how this -- can even keep the doors open what's gonna happen with mark that this is like a soap opera.
-- -- here retail expert and executive director at P&G venture group with us now.
Chris -- you say that JC Penney screwed up when they took away the promotions.
Right to me listener expert and that he.
I think we lost there I'm gonna tell you JC -- screwed up when they took away the promotions because everybody wants -- deal and why don't historically not gonna get a deal.
-- it all comes down -- who said what what -- the -- actually say because -- and SA -- is they're tired of that contract this is like -- itself to outside outside because JC -- has these stores in stores and stores and the stock break down and -- down now about 4% for a half percent but the fact getting -- now so time the big broader market top 27 points now on the -- hold period -- -- to -- hit on Friday -- until about this that I guess right the markets these states.
Ho hum big time they're very resilient to what's going on in Washington.
Investors not saying hum that this JC -- -- -- on -- -- event they think you're back with us right now.
I would just talking about the promotions thing you know they tried to good Trader -- out -- everything at a reasonable price didn't work.
-- what you can't just you know delete every -- low price saying from a -- like JC -- for the consumer with very -- -- they eliminated all the promotions and they have adopted this fair and square pricing -- what does that mean to the consumer they absolutely had no idea.
So now they realize that -- soccer.
That consumer wants to have a coupon and wants to know she's getting a deal so -- -- re instituting everyday low pricing.
Kind of a daily and a dollar short that is it because in -- notes you actually say -- -- superstar management team right in theory on paper.
These guys can get it together.
Absolutely and you have -- outstanding who has the apple discounts.
And the target discount so obviously investors are willing to kind of let him screw up in most other CEOs in my opinion would be out of a job by now.
They have a stellar management team.
They have an amazing executive from Coca-Cola -- handling their marketing.
So kind of like all the king's horses and All the King's Men can't bring JC penny back together again.
Someone is certainly hoping they can what's your theory though on this whole Martha Stewart thing how does this play out.
You now Ron Johnson and one is you know -- -- a mandate to bring JC -- back from.
And -- with a strong home department used to be so obviously sought her out.
And they sat together and try to find a loophole in our contract with Macy's.
Which they thought they did which is she's -- to have free standing retail store and what does that mean so is a shop -- shop.
-- a freestanding retail store want to -- JC Penney.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- It's been a rough week for Ron Johnson -- -- that stock was down 17% last week alone Kristen Benz thank you very much.
