CEO Ron Johnson Boosts TV Advertising, Adds Former Coca-Cola Marketer Sergio Zyman as an Adviser
sales plummeted 25% in 2012, even as its measured media spending jumped 14% to $504 million.
The beleaguered retailer spent more on advertising than it has in any of the last five years and made major changes to its media mix, under the direction of CEO Ron Johnson. TV advertising climbed, particularly network TV spending, while radio and internet display investments dropped. And despiteMr. Johnson’s declaration late last summer that the retailer would invest heavily in newspapers, spending in that category was down slightly.
JC Penney reported that its fourth-quarter net loss widened to $552 million. The retailer posted an annual net loss of $985 million.
Sales in the fourth quarter, which includes the holiday-shopping period, slid 28% to $3.88 billion. For the year, sales fell 25% to $12.98 billion. That marks the lowest annual revenue the retailer has reported since at least 1987.
“It’s the worst performance that I’ve ever encountered in decades of covering retail — there’s nothing really to compare it against,” said Bernie Sosnick, an analyst at Gilford Securities.