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In an interview with The Associated Press in late January, Johnson said he didn't believe shoppers would be turned off by the sea of big markdowns in the store. "I wouldn't assume they like the (old) pricing strategy. I think they're insulted by it," he said in the interview. Brian Sozzi, NBG Productions analyst, noted that Francis's sudden departure underscores the big mistakes the company has made in articulating the new image and policies. "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," Sozzi said. Penney, based in Plano, Texas, said Francis is unavailable for comment. Francis is among a number of big-name executives Johnson has brought in to help transform everything about the retailer, from the brands it carries to the store experience. The riskiest move, however, is the elimination of hundreds of sales events in favor of more predictable low prices. Penney reported last month a bigger-than-expected loss for the first quarter. Revenue also dropped 20 percent as customer traffic slipped 10 percent. Meanwhile, revenue at stores open at least a year
-- a comparison used to measure a retailer's health -- dropped 18.9 percent. Investors were spooked by Monday's announcement. Shares of J.C. Penney Co., which closed down more than 2 percent at $24.33, fell nearly 6 percent more in after-hours trading Monday on the news. After Johnson laid out his vision for the new pricing strategy to analysts at the end of January, shares soared, peaking at $43.13 on Feb. 9. But they have lost almost half of their value since then.
[Associated
Press;
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