Penney CEO Taking Over Chain's Advertising

Two days ago when J.C. Penney announced that the company's president, former Target exec Michael Francis, was leaving the department store chain it offered no explanation. Speculation swirled that Mr. Francis was being made the scapegoat for what some believe is a flawed strategy. Others supported the strategy, but said the advertising created under Mr. Francis failed to communicate Penney's pricing advantage to consumers.

In an interview with Women's Wear Daily, Mr. Francis' now ex-boss Ron Johnson set the record straight: he's taking over the chain's advertising and merchandising because he thinks he can do a better job in communicating Penney's pricing to consumers.

"I think the strategy is working well," he told WWD. "I'm quick to learn and quick to act, but we will not waver."

An Associated Press piece highlighted the type of advertising created under Mr. Francis. It included a spot where a dog continuously jumps through a hula hoop held by a young girl. Viewers hear a voice-over: "No more jumping through hoops. No coupon clipping. No door busting. Just great prices from the start."

Brian Sozzi, an NBG Productions analyst, offered this insight on Mr. Francis' departure: "Since Ron Johnson was unlikely to fire himself due to early turnaround missteps, he appears to have decided to swing the axe over the head of the person he hand-picked as president."

• Ron Johnson to Rejig J.C. Penney's Marketing - WWD.com (sub. required)
• Penney to Tweak Message, but Not Its Strategy - The Wall Street Journal
• J.C. Penney says its president, ex Target exec, is leaving - The Associated Press/USA Today