After 11 years or exemplary service as Apple's Senior VP of retail, Ron Johnson has decided to move onto another challenge. The man who helped spearhead Apple's unparallelled retail success announced earlier this week that he'll be taking on CEO duties at JC Penney.
After 11 years or exemplary service as Apple’s Senior VP of retail, Ron Johnson has decided to move onto another challenge. The man who helped spearhead Apple’s unparallelled retail success announced earlier this week that he’ll be taking on CEO duties at JC Penney.
There’s no mistaking that Apple’s retail stores have been an invaluable part of the company’s resurgence. Though Apple’s plans were initially scoffed at, Apple under the direction of Johnson was able to turn Apple’s line of retail stores into some of the most profitable and foot-trafficked stores in the entire country, if not the world. Indeed, per square foot, the only store more profitable than Apple is Tiffanys.
Indeed, word has it that the concept of the Genius Bar was Johnson’s idea and was implemented despite the initial objections of Steve Jobs.
So why would the Harvard MBA educated Johnson leave Apple when the company has never been stronger and as it continues to expand its retail vision? Well, in JC Penney’s press release announcing Johnson’s hire, Apple’s retail architect explained.
“I’ve always dreamed of leading a major retail company as CEO, and I am thrilled to have the opportunity to help J. C. Penney re-imagine what I believe to be the single greatest opportunity in American retailing today, the Department Store. I have tremendous confidence in J. C. Penney’s future and look forward to working with Mike Ullman, the Executive Board and the Company’s 150,000 associates to transform the way America shops.”
Johnson will effectively assume the CEO position on November 1, 2011.
Apple, meanwhile, acknowledged the departure via a statement issued to the Wall Street Journal:
“Ron is excited about this opportunity and we hope it goes well for him,” a spokesperson said. “We’ve got a great retail team in place and are actively recruiting for his replacement.”
Upon news of Johnson’s hiring, JC Penney’s stock price skyrocketed up, clearly illustrating the confidence investors have in Johnson who did a tremendous job of rolling out Apple’s retail stores and who had previously spent 15 years turning Target into a marquee brand.
Somewhat interestingly, and in an effort to showcase his confidence in JC Penny’s long-term future under his control, Johnson signed on to invest $50 million worth of JC Penney stock that aren’t redeemable for 6 years. Now that’s putting your money where your mouth is!
Then again, with the hundreds of millions of Johnson earned while at Apple, I think he can more than afford to make such a bold investment. And besides, from Target to Apple, there’s no reason to think that Johnson can’t turn JC Penney around.
