I have criticized the Board of J.C. Penney for their decisions over the past few years. (Just search the archives). However, they continue to find ways to amaze me with their decision processes. Despite my predictions, the company is still around (so you can validly question my assumptions or conclusions), but this latest decision may finally prove me right.
What decision? The choice to make a senior executive from Home Depot their new CEO. Marvin Ellison is currently the Executive VP of US stores for Home Depot. So why am I suggesting the choice is a bad one?
Two big reasons: (1) Home Depot is not really a good retailer anymore. They may be big, but that does not mean they are good at what they do. (2) And more importantly, in my experience, Home Depot’s success comes more from bullying their vendors/suppliers than it does from being a talented retailer.
J.C. Penney is in no position to bully its suppliers, so, if I am right, I cannot see how an exec from a company with that kind of culture can possibly be right for the J.C. Penney turnaround.
We’ll see, starting August 2015.
Mitch
Value Acceleration 