Hardware Retailing The Industry's Source for Insights and Information
Former Home Depot executive Marvin Ellison is leading J.C. Penney’s turnaround, and the strategies he’s using look like lessons he learned from the home improvement giant.
And it’s working. The store’s stock is up 50 percent; the company is paying off debt; and it expects to see $1 billion profits, according to an article from Bloomberg.
Ellison, who became CEO of Penney’s in 2014, spent 12 years with Home Depot. While he was there, “he helped forge one of the most successful turnaround projects in retail history,” Bloomberg reports.
“Home Depot had been battered by the 2008 housing collapse, under-investment in technology and store operations, and executive mismanagement that demoralized employees and customers. It completely transformed its business by halting store expansion, shedding unprofitable businesses and focusing on growth areas such as private brands and e-commerce. Now Ellison is looking to apply the same toolkit to J.C. Penney. “
At J.C. Penney, Ellison has made Home Depot-mimicking changes, such as reducing the number of corporate emails store managers receive and implementing a “60-40 plan—to shift 60 percent of an employee’s time to helping customers and away from back-room tasks like stocking merchandise,” the article says.
Ellison is also leading J.C. Penney into competing more in the home improvement marketplace by selling major appliances and flooring and expanding its window covering business.
