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Apple’s Ron Johnson to become CEO of J.C. Penney

BY Marianne Wilson

New York City — Ron Johnson, the man credited with building Apple’s wildly successful retail empire, is leaving the high-tech company to become CEO of J.C. Penney Co.

Johnson will take the reigns at J.C. Penney on Nov. 1. He will report to current CEO Myron (Mike) Ullman, III, who will become executive chairman. Johnson will join the company’s board, effective Aug. 1.

“I’ve always dreamed of leading a major retail company as CEO, and I am thrilled to have the opportunity to help J. C. Penney re-imagine what I believe to be the single greatest opportunity in American retailing today, the department store,” Johnson said in a statement.

Johnson, 52, has served for the past 11 years as senior VP of retail at Apple, where he led its overall retail strategy. Under his direction, Apple stores achieved a record level of growth, exceeding a billion dollars in annual sales within two years of their debut. Apple today operates some 325 stores around the globe, and contributes a reported 13% to Apple’s bottom line.

Johnson joined Apple after 15 years at Target Corp., where his last role was VP of merchandising. He is credited with developing new initiatives for branding, marketing and merchandising that helped set the chain apart.

Johnson’s departure to join J.C. Penney caught many by surprise. It comes when Apple’s stores are flourishing and the company is getting ready to ramp up its international expansion. However, many insiders speculated that Johnson could not pass up the chance to run a company.

According to various published reports, the department store chain first contacted Johnson three or four years ago. The more recent wooing started in November after activist investors Pershing Square Capital Management and Vornado Realty Trust bought 26.4% of J.C. Penney stock.

Johnson is investing $50 million of his own money in J. C. Penney by buying warrants on the company’s stock. In 2017, the warrants will give him the right to buy more than seven million shares at $29.92 a share, meaning that if he can raise the stock price he stands to make a big profit.

During his time at Apple, Johnson received total compensation valued at $141 million, according to the executive compensation firm Equilar, the New York Times reported. The analysis excludes the years 2008 and 2009, during which Johnson realized additional stock gains valued at more than $100 million, according to the report.

Johnson arrives at J.C. Penney as the chain is coping with the slowing economic recovery, still high unemployment and surging costs for cotton and other materials.

“It’s our job to rethink everything,” Johnson said in a telephone interview with Bloomberg. “Retailing’s always been about creativity, it’s about creating exciting new ways for people to shop, new products for people to purchase, new ways to do things.

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duyentran607 says:
Apr-20-2013 10:55 pm

Chatrandom.com
Johnson arrives at J.C. Penney as the chain is coping with the slowing economic recovery, still high unemployment and surging costs for cotton and other materials.Chatrandom.com

V.Lott says:
Apr-15-2013 01:08 am

Let me start by saying nice
Let me start by saying nice post. Im not sure if it has been talked about, but when using Chrome I can never get the entire site to load without refreshing many times. Could just be my computer. Thanks. Press Release Distribution

V.Lott says:
Apr-15-2013 01:08 am

Let me start by saying nice post. Im not sure if it has been talked about, but when using Chrome I can never get the entire site to load without refreshing many times. Could just be my computer. Thanks. Press Release Distribution

P.Lopez says:
Apr-09-2013 06:05 pm

Chatrandom
Apple stores achieved a record level of growth, exceeding a billion dollars in annual sales within two years of their debut. Apple today operates some 325 stores around the globe. Chatrandom

P.Lopez says:
Apr-09-2013 06:05 pm

Apple stores achieved a record level of growth, exceeding a billion dollars in annual sales within two years of their debut. Apple today operates some 325 stores around the globe. Chatrandom

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Jarden names new CEO

BY CSA STAFF

RYE, N.Y. — Jarden Corp., a manufacturer of a variety of branded consumer products, announced that James Lillie was named CEO effective immediately. Martin Franklin, formerly chairman and CEO of Jarden Corp., will serve as executive chairman, overseeing corporate strategy, including growth initiatives, corporate culture and philosophy.

As CEO, Lillie will be responsible for managing the day-to-day operations of the business and will continue to work with Franklin and Ian Ashken, Jarden’s vice chairman and CFO, to focus on driving consistent, profitable growth across all of Jarden’s business segments. In addition, Lillie will be joining the board of directors. All three executives will continue to operate under what has been known within the company as the office of the chairman.

"I want to congratulate Jim on his well-deserved promotion, and I look forward to continuing our long term relationship and working with him in this new capacity," said Franklin. "This change is part of the natural evolution of Jarden. Jim has been an integral part of Jarden’s executive management team since joining the company in 2003 and I am confident that he is the right choice to drive the day-to-day operations of Jarden going forward. At this time, I will assume the role of executive chairman, where I will continue to set the strategic and philosophical direction of the company and closely collaborate with Jim and Ian to drive Jarden’s continued growth as a global consumer products leader. I will continue to be as committed to the company’s success as ever in the future."

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May a mixed bag for retail sales

BY CSA STAFF

WASHINGTON — Retail spending for the month of May experienced a slight drop of 0.2% to $387.1 billion, though the advanced estimates noted that May sales were 7.7% higher than the year-ago period, the U.S. Census Bureau said Tuesday.

The government agency also reported that total sales for the March through May period were up 7.5% from the same period a year ago.

Across retail sectors, grocery stores during May continued on an upward trend, rising 1.7% to nearly $46.7 million, up from $45.9 million in April. Health and personal care stores gained traction after seeing a decline last month of 0.3% — the U.S. Census Bureau said May sales rose 1.3% to $22.8 million.

Commenting on the sales results, the National Retail Federation said that the industry isn’t immune to other economic factors, such as employment rates and housing, and that lackluster sales do not come as a surprise to retailers.

"After a string of disappointing government reports relating to economic activity and employment, May’s retail report supports the idea of the economy hitting a soft patch," NRF chief economist Jack Kleinhenz said. "Though consumers are spending cautiously, we are not seeing them cut out new purchases completely, signaling there is a distinct appetite to spend if economic conditions let them."

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