Tuesday, June 14, 2011

GreenBkk.com Tech | Apple's head of retail to become Penney CEO

Apple's head of retail to become Penney CEO


Ron Johnson (C), Senior Vice President of Retail Apple, speaks to the media at the company's retail store in the Carrousel du Louvre shopping center in Paris November 5, 2009.
Credit: Reuters/Jacky Naegelen

NEW YORK | Tue Jun 14, 2011 11:53am EDT

(Reuters) - Apple Inc's (AAPL.O) head of retail operations Ron Johnson will become chief executive of J.C. Penney Co Inc (JCP.N), the department store operator said on Tuesday.

He will take the reins of company from Myron Ullman on November 1, Penney said. Ullman, who has been CEO since 2004, will become executive chairman of the board.

Penney shares rose 12.8 percent to $33.96 in morning trading.

Johnson joined Apple in January 2000 and has overseen the opening of 300 of the computer maker's popular stores. Before Apple, Johnson spent 15 years at big box discounter Target Corp (TGT.N) as vice president of merchandise.

Penney suffered dramatic sales declines during the recession as its shoppers, more exposed to the weak economy than those of rival Macy's Inc (M.N) pulled back. Its sales have begun to recover but are still well below 2008 levels.

Billionaire investor William Ackman's Pershing Square Capital Management became Penney's largest shareholder in October when it bought 16.5 percent of shares.

Ackman had faulted Penney for lagging rivals such as Macy's and Kohls Corp (KSS.N) and not taking advantage of its household name. Penney quickly put in an anti-takeover poison pill to prevent him, or any other investor, from getting more than 20 percent of shares.

But in February, Penney gave him a spot on the board, along with Steven Roth, chairman of Vornado Realty Trust (VNO.N), which holds 8.7 percent of shares, and is Penney's third-largest shareholder.

(Reporting by Phil Wahba, editing by Dave Zimmerman)

Credit: Reuters (www.reuters.com)

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