“Uneasy lies the head that wears a crown” — the often misquoted line from Shakespeare’s Henry IV can easily be applied to the life of the CEO. When the brand is doing well the CEO is on top of the world and lavished with praise, but as soon as sales start to slide and stock prices dip his/her head is on the chopping block. The following list of the best and worst retail CEOs of the year highlights some of the top and poorest performing brands of the year; led by CEOs of vision and innovations as well as bosses that can’t seem to get out of their own way or keep their foot out of their mouth. Three of the four worst CEOs on this list also made Fox News’ compilation of the worst CEOs of the year.
Edward Lampert, Sears: Sears is in freefall. Instead of helping guide the American institution back to profitability Lampert is little more than an auctioneer as the retailer is gutted piece by piece and sold to the highest bidder. In its latest gyration, the spin-off of Lands’ End, a willing buyer wasn’t even able to be found for the once-profitable brand. With seven straight years of same-store sales declines, Sears greatest asset currently is its real estate holdings — the sale of which may keep the company gasping for air in the coming years, but the end is near.
Ron Johnson, JCPenney: Coming over from Apple, Johnson was heralded as the savior of the struggling JC Penney brand but was ousted in April of 2013 after just 17 months after his unconventional tactics proved a disaster for the department store chain. Johnson eliminated sales, eliminated brands, brought in new brands, brought back sales, changed the logo numerous times — but could never get any traction. His antics devastated the brand, as JCPenney lost nearly a billion dollars in 2012 and stock prices dropped nearly 50% during Johnson’s reign. Industry insiders and analysts believe that Johnson may well have hammered the nail in the once proud American brand’s coffin.
Michael Jeffries, Abercrombie & Fitch: Jeffries got himself in hot water with some over-the-top proclamations about the brand’s exclusivity and the lack of plus-size clothing. Alienating potential customers is never a good business practice and every article written about the troubled CEO seems to highlight another politically incorrect statement. Shareholders would likely turn the other cheek to the brashness of Jeffries had the company performed better, but with a 30% drop in share price in 2013 little leeway can be expected. Jeffries has signed a new year-long contract that takes effect on February 2 — Abercrombie’s apparent confidence in it CEO is only skin-deep, the new contract ties his compensation to the brand’s performance and if the current financial situation stands pat he surely won’t be pulling in a king’s ransom.
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Dennis “Chip” Wilson, Lululemon: Lululemon built its brand by providing comfortable, attractive and well-built active clothing — particularly yoga pants — for women of all shapes and sizes. When one of their yoga pants was cited for poor construction and sheerness, instead of stepping up and taking ownership of the gaff, then acting CEO (position currently held by Laurent Potdevin) and founder of the brand Wilson attacked the user. He blamed the size of the wearers’ thighs instead of the weakness of the fabric, igniting a public relations firestorm that lead to him stepping down as chairman of the board. When the controversy first hit in June stock prices took a $20 nose dive — shares continue to fall and are at the lowest point in 52 weeks.
Date: Jan 7, 2013