J.C. Penney stock continues to climb
When J.C. Penney’s former CEO, Ron Johnson, stepped down weeks ago, many people wondered what to make of the changes and tumultuous times the company seemed to be going through. In recent times, though, it’s clear that faith in J.C. Penney is rising, with a growth of 4% in the company’s stock on Monday alone.
This follows a growth of 9% the week before, as George Soros, a noted hedge fund mogul, decided to take a stake in the company, bolstering worldwide confidence in J.C. Penney in the process. Now, J.C. Penney has announced that it has secured a loan from Goldman Sachs to the tune of $1.75 billion, which has helped their stock grow even more.
Also, a New York Post article published Monday reported that two major hedge funds had also chosen to invest in J.C. Penney. Times have been good in recent weeks for the longtime retailer, while not too long ago, things were much, much rockier.
As a CEO, Johnson was a disaster, implementing borderline outrageous strategies that many expected to backfire. Johnson wanted to turn J.C. Penney from a department store to a boutique store, getting rid of older brands in favor of newer ones. He also wanted to eliminate checkout counters completely, instead favoring mobile or self-checkout options for customers.
The market spoke, as J.C. Penney saw sales drop by 28% from the year before, with $427 in losses thanks to Johnson’s not-so-bright ideas. Since Johnson has stepped down, Mike Ullman has taken the reins once again. Ullman had the job for seven years previously before turning it over to Johnson, and the move is one of stability rather than continued radical strategies and bold changes.
So far, the market and customers themselves have responded well, and things- at least in the short-term- appear to be looking up for the longtime retailer.