Apple's retail chief leaves to be CEO of J.C. Penney

Apple's retail chief leaves to be CEO of J.C. Penney

Summary: J.C. Penney named Ron Johnson as CEO. Johnson launched Apple's retail strategy and was the man behind the company's aggressive store expansion a decade ago.

SHARE:
TOPICS: CXO, Apple
10

J.C. Penney named Ron Johnson as CEO. Johnson launched Apple's retail strategy and was the man behind the company's aggressive store expansion a decade ago.

Johnson will become CEO on Nov. 1 and report to Myron E. Ullman, current chairman and CEO at the retailer.

Apple's retail strategy looked crazy a decade ago, but has been used to create a juggernaut that is about marketing as much as actual retailing. Apple's retail stores showcase products such as the Mac, iPhone, iPad and iPod.

For Johnson, who joined Apple from Target, running a large retailer has been a goal. Johnson said:

"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."

With Johnson in the fold, it should be interesting to see how J.C. Penney layouts develop.

Meanwhile, Johnson is taking some of its Apple wealth and investing in his new employer. He is buying $50 million in J.C. Penney warrants on 7.257 million shares. These shares can't be hedged or sold for the first six years of a 7.5 year term.

With Johnson's track record at Apple, his tenure at J.C. Penney will be worth watching. Here's Johnson's Apple record by the numbers:

For the six months ended March 26, Apple’s retail operating profit was $1.84 billion on revenue of $7.04 billion. Compared to the same time frame a year earlier sales almost doubled. Operating profit did double.

  • In fiscal 2010 closing at end of September, Apple’s retail outlets delivered an operating profit of $2.36 billion on $9.8 billion in revenue.
  • In 2009, Apple’s retail stores had an operating profit of $1.67 billion on revenue of $6.65 billion.
  • In 2008 saw an operating profit of $1.66 billion on revenue of $7.3 billion.
  • In 2007, Apple’s retail operating profit was $857 million on revenue of $4.1 billion.
  • In 2006, Apple’s retail operating profit was $600 million on revenue of $3.25 billion.
  • In 2005, Apple’s retail unit had an operating profit of $151 million on revenue of $2.35 billion.
  • In 2004, Apple’s retail stores delivered an operating profit of $39 million on revenue of $1.18 billion.
  • In 2003, Apple had a retail operating loss of $5 million on revenue of $621 million.
  • In 2002, Apple’s had retail operating losses of $22 million on revenue of $710 million.

Topics: CXO, Apple

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

10 comments
Log in or register to join the discussion
  • RE: Apple's retail chief leaves to be CEO of J.C. Penney

    In fiscal 2010 closing at end of September, Apple?s retail outlets delivered an operating profit of $2.36 billion on $9.8 billion in revenue.

    I bet Michael Dell is not happy, I remember him calling out Steve Jobs and critizing their new store strategy in 2001 even saying the last thing you want is retail stores, customers want direct from Dell.

    NICE!
    Hasam1991
    • Dell was wrong again; it was Jobs, not Johnson who 'launched retail ...

      @Hasam1991: ... strategy.

      Jobs came up with the idea that Apple needs its own stores, and with concept of these being integral all-inclusive experience, and with concept of minimalistic, lot of glass design, and even specifically the cube thing in NYC.

      But yes, all these concepts and ideas, of course, could not have implement themselves, so Johnson deserves all possible honours and respect for his outstanding organizing work.
      DDERSSS
  • Deserves it

    Good for him.
    Robert Hahn
  • RE: Apple's retail chief leaves to be CEO of J.C. Penney

    Cool can't wait to discuss jeans at the Jeanius Bar.

    @BillAmend
    The one and only, Cylon Centurion
    • RE: Apple's retail chief leaves to be CEO of J.C. Penney

      @Cylon Centurion Genius

      And I can't wait for cash registers at every department to be considered "revolutionary".
      Your Non Advocate
    • LMAO

      NT
      cosuna
  • RE: Apple's retail chief leaves to be CEO of J.C. Penney

    Who fricken cares if he leaves has he made a good choice to leave. Besides Microsoft Stores are a allot more better than Apple stores. Has who wants to see so many of these sales people wearing black t-shirts saying talk to a genius hahahaha which most of them are not genius. they all look like bunch of troll gay fan boys.
    ipadsucks
    • RE: Apple's retail chief leaves to be CEO of J.C. Penney

      @ipadsucks

      This site needs people like you. Not sure why but when you create a $9.8 billion revenue company let us know. Penny are talking on someone who is good at retailing even if you think Microsoft stores are better or something like that.
      So far MS stores certainly have one advantage you never a problem finding a staff member who's not busy. At the moment its a bit of a me too store but maybe their model will develop in a year or two.
      martin23
    • RE: Apple's retail chief leaves to be CEO of J.C. Penney

      @ipadsucks Awwww what's the matter there little troll? Are you mad that the Microsoft stores have not done nearly as well as the Apple stores have? Are you upset that the Apple Geniuses stole your gay trollish fanboi look? Or are you upset that one of them took your boyfriend? Perhaps all 3? Sucks to be you.
      athynz
  • RE: Apple's retail chief leaves to be CEO of J.C. Penney

    Well done! Thank you very much for professional templates and community edition
    <a href="http://www.yuregininsesi.com" title="seslichat">sesli chat</a> <a href="http://www.yuregininsesi.com" title="seslisohbet">sesli sohbet</a>
    talih