Ron Johnson, who joined Apple more than a decade ago to build the computer companys retail stores, has been named J.C. Penneys next chief executive, effective November 1.
He will replace Myron E. (Mike) Ullman, III, chairman and chief executive officer of Penney. Ullman will become executive chairman.
Johnson is widely credited with helping Apple develop a formidable retail presence. Over the course of the past decade, the company has expanded from its initial two stores (in Tyson s Corner, Va., and Glendale, Calif.) to more than 300 locations worldwide. He joined Apple after 15 years at Target Corporation, where he was a key merchandising executive.
Penneys 2010 revenues rose 1.2 percent to $17.76 billion, and same-store sales increased 2.5 percent. But observers said the department store operator is losing market share to other department stores like Macy’s and Kohl’s, as well as upscale discounters such as Target.
Ullman said Johnson, 52, “is widely recognized and highly regarded in the retail industry for his creativity and innovation, his commitment to empowering employees to deliver an unparalleled customer experience, and to making stores exciting places where people love to shop. His tremendous accomplishments at Apple and Target speak to his great consumer merchandising, marketing and operational talent.”
Johnson said, “Ive 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.”
As part of the hiring, Johnson requested and committed to make a personal investment of $50 million in Penney through the purchase, at fair market value, of 7 1/2-year warrants on 7.3 million shares of J. C. Penney stock.
Last week, JCP shares rose 14.6 percent to close at $34.29 on Friday.
