March 14, 2013- After a prolonged slump, it appears that JC Penney (JCP) stock is moving upward. The value of a single share rose by five percent in active trading on Tuesday that came about as the result of news that the company’s Chief Executive Officer (CEO) Ron Johnson was planning to step down after his leadership produced very poor annual results.
Interestingly, a spokesperson for JC Penney denied the “leaked story” and claimed that no decision has been made regarding Mr. Johnson’s future as head of the huge retailer.
The intent to stay or leave is extremely important to JC Penney and to those who are shareholders because Ron Johnson has initiated plans that will foster radical change in this organization and how it operates.
After suffering a severe reduction in sales in the last fiscal year that amounted to twenty five percent and was probably due to the fact that the retailer stopped accepting coupons or holding special sales, Mr. Johnson produced a new plan to open thirty boutique shops, including the very trendy Joe Fresh clothing shops in most of its seven hundred stores.
This is a story that analysts are likely to follow closely.