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Sat, 29 Dec 2012 13:00:00 GMT | By Kim Peterson, MSN Money
10 worst business moves of 2012

J.C. Penney revamps its strategy

A newer men's section of the J.C. Penney Herald Square department store in New York City, N.Y. (© Shannon Stapleton/Reuters)
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J.C. Penney revamps its strategy

Many investors applauded when J.C. Penney's (JCP) new CEO, Ron Johnson, unveiled a new strategy that he said would turn around sales and reinvigorate a company that had grown a little stale. I mean, this was Ron Johnson, the guy who invented the Apple retail store. He could do no wrong!

Well, that seems like a lifetime ago. The company has been in a yearlong slump, struggling to survive as Johnson clings to bits and pieces of the strategy he once championed. Sales fell 27 per cent in the last reported quarter, leading to big worries about the holiday turnout.

In the first nine months of its fiscal year, J.C. Penney’s sales have fallen by $2.7 billion – about equal to the annual revenue of Saks (SKS), The Wall Street Journal reports.  

Johnson has been walking back his bold strategy somewhat. After pooh-poohing the company’s discount-after-discount strategy of the past, he authorized some coupons and other promotional gimmicks, such as buttons for customers that, when redeemed online, awarded gift certificates and other goodies.

Can Johnson turn it around in 2013? Shareholders don’t seem to think so. Penney’s stock price has been nearly halved since early March.

* Bing: Is J.C. Penny coming to Canada?

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