Reuters: Global Markets: Penney plunges after abrupt departure of top executive

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Penney plunges after abrupt departure of top executive Jun 19th 2012, 14:40 Tweet Share this Email Print Related News UPDATE 2-Penney marketing chief steps down as ads disappoint Mon, Jun 18 2012 Retailer Body Central loses half its value - again Mon, Jun 18 2012 Smucker looks to cut prices as demand takes hit Thu, Jun 7 2012 WRAPUP 3-Bargains bolster U.S. same-store sales in May Thu, May 31 2012 Related Topics Hot Stocks » Asian Markets » The sign outside the J.C. Penney store is seen in Westminster, Colorado May 16, 2011. Credit: Reuters/Rick Wilking Tue Jun 19, 2012 10:40am EDT (Reuters) - Shares of J.C. Penney Co Inc (JCP.N) slid 11 percent on Tuesday, after its president abruptly left the department store operator following a botched advertising campaign that was a linchpin of the 110-year old chain's turnaround plans. Penney said on Monday that Michael Francis, a key member of the "dream team" it assembled to transform the company's image, merchandising and pricing, was leaving just months after he joined from Target Corp (TGT.N). "The turnaround envisioned in January has not gained traction, and the company has made basic mistakes such as introducing 'branding' marketing before the product (or) stores had changed," Nomura analyst Paul Lejuez said in a client note. "Francis may be taking the blame for the marketing mistakes. Alternatively, maybe Francis is giving up on a turnaround plan he helped create." CEO Ron Johnson, who took over in November after coming from Apple Inc (AAPL.O), admitted last month that Penney's ads had not clearly explained to shoppers a shift in its pricing strategy, central to its turnaround efforts. Penney's ads have been criticized for confusing shoppers and not focusing on product and prices. Shares of the company were down 10 percent at $21.89 on Tuesday morning on the New York Stock Exchange. They earlier touched $21.57 -- their lowest in nearly two years. (Reporting by Mihir Dalal in Bangalore; Editing by Viraj Nair) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints Comments (0) This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

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