iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
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Reminder: Ron Johnson and Bill Ackman Destroyed JC Penney

NOTE: In honor of Le Fly’s upcoming 42nd bday, we’re doing free trials for Exodus this week. Email me at Flybroker at gmail dot com for access.

About 6 years ago, Bill Ackman and Ron Johnson, former guru from Apple, ventured on the quest to turn JC Penney into a chic retailer, one without coupons filled with elderly people in search of deals. That plan ended in disaster, placing the once legendary retailer in the grips of a debilitating financial crisis.

Look at the revenue and earnings collapse during the Ackman-Johnson era at JCP.

This morning the stock is spiraling lower again, heading towards the $1s, on news that its CEO is leaving for Lowes.

The home improvement retailer announced Tuesday it is naming Ellison president and CEO, effective July 2. Ellison will take over for Robert A. Niblock, who previously announced his intention to retire.

Ellison is chairman and CEO of J. C. Penney, which he has attempted to steer through a turnaround.

Prior to J.C. Penney, Ellison worked at Lowe’s rival Home Depot.

Shares of J.C. Penney were down 6 percent, while shares of Lowe’s were up 2 percent in pre-market trading.

The highly leveraged retailer has struggled to find its place in the evolving retail landscape, hamstrung with by its ability to properly buy clothes shopper want and unprofitable stores.

The retailer has taken a number of efforts to help steward a turnaround, including in March the elimination of 230 positions and the departure of executive vice president of Penney’s omnichannel business, Mike Amend,

Question: When SHLD and JCP go away, what will happen to all of that empty space at the mall?

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5 comments

  1. mensch

    Malls should be living spaces already. Put a grocery and some entertainment in with some apartments and you have a nice self-contained little community where the traffic’s all on foot. Make part of the giant parking lot into greenspace or sports fields.

    Americans really suck at designing livable space (it usually happens by accident rather than design IMO) but this should be easy.

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    • numbersgame

      Best idea for malls that I’ve seen.

      Of course, the land is so valuable (hence corporate raiders sell the land to themsleves and then lease it back to the retailer), that the more likely answer is to level them and put up more-profitable forms of housing.

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  2. theonnodick

    Race tracks for those tiny little drones

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  3. dragun

    Paintball/Laser tag arenas.

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