J.C. Penney hires former boss Joann as CEO

Diving Brief:

• J.C. Penney announced Tuesday the appointment of Jill Soltau to the position of Executive Director and Board Member effective October 15.

• Soltau is a 30-year veteran of retail and a merchandising manager. He was recently president and CEO of Joann Stores, according to a press release from the company. Previously, she worked for Shopko for eight years, most recently as President, after serving as Executive Vice President and Sales Manager.

• The chain of department stores was looking for a CEO after the abrupt departure of Marvin Ellison, who left in May, to become CEO of Lowe's.

Insight on diving:

J.C. Penney has been rudderless for months and strives to take advantage of the high level of consumer confidence that elevates rivals. GlobalData chief executive Neil Saunders called Soltau's appointment "good news".

"JCP has been without leadership for too long, and we feel it's drifting at a time when it should capitalize on the strong consumer economy and make the changes necessary to ensure its survival," he said. in comments to Retail. Dive. "The company is in a relatively weak financial position, does not have much room for maneuver, but must make decisive changes to restore the confidence of staff and investors, and to inspire customers." a daunting challenge for any new CEO, but with external conditions more favorable than they have been for a long time, Ms. Soltau has at least a chance to fight. "

In a statement Tuesday, Paul Brown, director of J.C. Penney's board and chairman of the research committee, said the company was looking for a person with merchandising qualities. "While we were looking for the right person to lead this iconic company, we are looking for someone with rich experience in the apparel and merchandising industry, so Jill is perfectly suited," he said. "Not only is she an established CEO and a former chief merchant, but her deep experience in product development, marketing, e-commerce and in-store operations has been an important foundation for the recovery she has led." in previous companies. "

Choosing a woman for the role, especially a woman with her level of expertise, was a wise decision, Saunders said. "One of the central problems of JCP is its inability to get in touch with women, especially in terms of fashion," he noted. "We believe that Ms. Soltau will have a much more intuitive understanding of the changes to make than many who have held this role before her."

The retailer has been under pressure for some time and closed last year with a restructuring of its executive offices, abandon the long-time chief merchant John Tighe (and completely eliminating this position) in order to "streamline decision-making and promote greater agility within his merchandise buying teams". This year, more and more struggles in the garment sector were recorded, as well as the departure of three key leaders, including Ellison, Chief Financial Officer, Jeffrey Davis, and Customer Manager, Joe McFarland.

Therace Risch, Executive Vice President, Information and Digital, and Mike Robbins, Executive Vice President of Private Brands and Supply Chain, joined as Managing Director, during which Penney strived to revitalize his clothing line. Last month, the retailer launched Artesia, a new women's clothing line, in the fall. And on Tuesday, he unveiled another, Peyton and Parker, "designed to help moms create a style for family and home effortlessly, but nevertheless coordinated."