JC Penney appoints marketing VP

JC Penney Co has hired an executive from the mac and cheese world to reconnect with its middle-income shoppers. Resource-22

The beleaguered department store on Monday named Kraft Foods Inc executive Debra Berman as senior VP of marketing to help revitalise the struggling brand, filling a void in the company that remained for 14 months.

Penney is trying to win back customers who fled during a transformation plan spearheaded by the chain’s former chief executive, Ron Johnson, that backfired and led to massive losses and sales declines.

Berman, 45, who has worked for Kraft since 2009, served as vice president for marketing strategy and directed global brand strategy for all Kraft-owned brands, including Velveeta, Philadelphia cream cheese and Kraft macaroni and cheese.

JC Penney, which is based in Plano, Texas, said Berman joins the company’s executive board and will report directly to CEO Mike Ullman III. The appointment took effect on Friday.

The appointment, however, did little to boost investor confidence. Shares fell more than three per cent , or 46 US cents, to close at $US13.82.

The stock has been down 30 per cent since January 2013 and has lost nearly 70 per cent of its value since early 2012, when investor bullishness about Johnson’s turnaround plan pushed shares up to $US43.

Berman fills the void left by Michael Francis, who departed in June 2012 after being hired by Johnson eight months earlier.

Francis, who was president and marketing chief, was responsible for marketing a new pricing plan created by Johnson.

After Francis left, Johnson himself oversaw marketing, until he was fired in April.

Berman’s appointment is the latest management change under Ullman, who returned to Penney’s helm in April when the board fired Johnson after only 17 months on the job. Since then, nearly a dozen senior executives, many hired by Johnson, have left.

Ullman is trying to replace them to help reverse Penney’s fortunes.

He’s also working to stabilize the business by bringing back basic merchandise and more frequent sales that were eliminated by Johnson in a failed bid to attract younger, hipper customers.

AP

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