Two Questions Haunting J.C. Penney

J. C. Penney CEO Ron Johnson at the company's headquarters in Plano, TX. Photograph by Mark Peterson/Redux

When earlier this year J.C. Penney announced it was switching to everyday low pricing, it was clear that the company had embarked on a major redesign of its business model. The proposed redesign was so extensive one could argue that it was almost like starting a new company from scratch. Echoing that view, J.C. Penney’s chief executive, Ron Johnson, announced that he was “treating the department store chain like a startup company.”

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