From the JCP earnings press release:
There are no quick fixes to correct the errors of the past.
That's really all you need to know. It's not as if I'm leaving out some important context that details exciting innovation at JCP. If I'm an investor, I'm furious. Very little has changed.Here's a company that should be thanking Ackman and Johnson because, no doubt, we can logically link them to JCP's swift downfall. Now current management can harness this built-in excuse to buy itself time as it digs from the same failed bag of standard retail tricks. It's not as if JCP was a stable business before Ron Johnson arrived. In fact, it's a bit like the 2011 version of Netflix (NFLX). With or without Qwikster and Reed Hastings' price hike, Netflix was set to implode. The circus Hastings created simply allowed him to focus on it, rather than the company's core issues. So that's what JCP is doing. Dragging the puck as it feebly attempts to dig itself out of a mess it conveniently credits to Ackman and Johnson. Don't get me wrong, JCP was profitable before the former Apple (AAPL) executive took over. The company actually saw sales increase slightly in 2010 and reported earnings of $0.28 per share, net income of $64 million and 3.8 percent in same store sales growth for Q1 2011, just before it gave Johnson the CEO gig. To sit here and argue how quickly Johnson accelerated JCP's decline, how much better off the company would be if he never left Apple and to dwell on the past distracts from the meaningful noise most brick and mortar retailers choose to ignore. How does physical retail escape the culture of obviousness that holds it back? That keeps it from evolving with the rest of the world. Addressing past mistakes out of the same textbook that helped create them will do little more than bring JCP back to mediocrity, if that. Sadly, JCP's Board of Directors doesn't have the vision to rid itself of blamers and old-school physical retail lifers in favor of the tech mindset, staff and strategies that have made Starbucks (SBUX) one of the few retailers prepared for the mobile, digital and connected future. Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV