Just 16 months later Johnson was out. Retail insquare foot boxes is all about merchandising, presentation and pricing. Together, they could have sliced and diced the stores into a more profitable footprint. Robyn Twomey for Fortune.
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All rights reserved. Penney experience what I should have done is short the entire sector. That would have been a smart move. You, like me , and many others were wrong about our assessment of the department store industry. Activist investors are supposed to be change agents, those prickly people who force CEOs and their boards to be uncomfortable.
If done well activist investing can be transformative for those companies on the receiving end of said activism. The 64 slides were meant to persuade investors that the turnaround CEO Ron Johnson was executing would deliver significant results down the road. Many things stand out from that presentation in that Ackman and anyone else hopeful of a better future for JCPenney might have viewed differently. NYSE: M.
The middle is rapidly disappearing. The Dream Team CEO Ron Johnson assembled a group of executives at JCPenney whose resumes were filled with all kinds of accomplishments at successful companies, some of them even retail. Including Johnson, you had four top executives who were brought in from Apple Inc. After all, what was trendier then Apple? You could still ask that same question today.
Retail in , square foot boxes is all about merchandising, presentation and pricing. I, along with Ackman, missed the fact that what JCPenney really needed were two people: a great merchant and a solid real estate expert. Together, they could have sliced and diced the stores into a more profitable footprint. It harkens back to my childhood watching the original Miracle on 34th Street and thinking how cool it would have been to be Mr. I wonder if Marvin Ellison felt that way about the movie?
Yes, in hindsight, it would have been a great short. As of this writing, Will Ashworth did not hold a position in any of the aforementioned securities.
Read The Part Of Bill Ackman's Investor Letter Where He Talks About Taking A Bath On JC Penney
Ackman sued. Ackman blamed the poor performance on their new CEO. It has been estimated that the total cost of the position, including direct stock purchases and 9. Please help improve the article by providing more context for the reader. Instead, they wanted to buy products at a discount for personal use.
Ackman Was Wrong: J C Penney Company Inc Stock Always Was a Short