Source: J.C. Penney Co. Inc.
J.C. Penney’s press release announcing Tighe’s appointment confirms reports that were circulating Tuesday that the company was hunting for a new chief merchant, generally considered to be the second-most important management post in a retail company. J.C. Penney CEO Marvin Ellison, who took over less than two months ago, thanked Sweney for “many contributions” to the company, and then had this to say about J.C. Penney’s management team:
Since joining JCPenney, I have been impressed by the level of bench strength that exists among our merchant talent pool. John’s positions over the last several years demonstrate the importance of developing high potential leaders for the benefit of succession planning.
So, apparently, Sweney did not fit into Ellison’s idea of who might succeed him at the top of the J.C. Penney food chain. With this move Ellison is also signalling to other members of executive management that anyone could be sent packing at any moment. Maybe that’s a good thing and exactly what the company needs.
Still the timing seems a bit odd. Retailers are heading into the holiday shopping season, and while all the merchandise was ordered and delivered to warehouses long ago, a new chief merchant could be held accountable if the company does not perform to expectations. Of course, one could argue that Sweney, who was promoted to the chief merchant job in March 2012 by former CEO Ron Johnson, was a logical choice to be the first to go under the new regime.
J.C. Penney’s stock jumped 8 cents at the opening bell Wednesday morning to $9.46 and traded up about 1.5% at $9.52 shortly thereafter. The stock’s 52-week range is $5.90 to $10.48.
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