Separate recent announcements by retailer JCPenney and drug store chain Walgreen could give investors a big opportunity, “ Mad Money ” host Jim Cramer said Tuesday. But it’s not what you might think.
“There’s a lot of ways to win in business,” he said, listing a few tried-and-true methods of beating the competition. “And then again, sometimes you can win by doing nothing, doing nothing but going against flailing and faltering competitors who seem to be flummoxed and floundering in unfathomable ways. Or to put it another way, you can be lucky enough to compete against JC Penney and Walgreen.”
This week, JCPenney announced that key executive Michael Francis would be leaving the company. Francis, who came from Target, was supposed to help new CEO Ron Johnson reinvent the retailer, shifting away from its coupon strategy it had employed for years.
Johnson, who saw same-store sales plummet 18 percent in its most recent quarter, will now take over merchandising along with operations. That could spell trouble.
“Frankly, JCPenney, while early on under the reins of Johnson, seems to have totally lost its way,” Cramer said.
The company, based in Plano, Texas, appears to be handing over billions of dollars in sales to such competitors as Target, Macy’s and Wal-Mart.Page 1 of 3 | Next Page