|
Eckerd president resigns
|
 |
March 13, 2000: 5:40 p.m. ET
Newman quits J.C. Penney unit after weak 4Q results, joins online retailer
|
NEW YORK (CNNfn) - J.C. Penney Co. Inc. said Monday that Frank Newman, president and CEO of its Eckerd drugstore unit, had resigned to join online retailer more.com.
John E. Fesperman, a member of Penney's executive committee, is succeeding Newman, who joined the company in 1993, until a permanent replacement is found, the company said.
J.C. Penney is conducting an external search for Newman's replacement, Rita Trevino Flynn, a company spokeswoman said.
Newman, 51, succeeds more.com's founder Don Kendall Jr. as CEO of the company, which sells health and beauty products online.
"I'm excited to have the opportunity to lead one of the true e-commerce innovators," Newman said in a prepared statement from more.com.
Based in Plano, Texas, J.C. Penney is one of the largest U.S. retailers and operates nearly 1,200 J.C. Penney department stores worldwide as well as 2,900 Eckerd drug stores.
Last month, the company announced it was closing 289 Eckerd stores and 40-to-45 J.C. Penney department stores, after posting disappointing fourth-quarter results.
The chain's earnings dropped more than 40 percent for the quarter ended Jan. 29, in stark contrast to other retailers' results, which got a shot from a strong holiday season.
Flynn said Newman's resignation had nothing to do with the company's performance.
"He told us he had a great opportunity to assume the leadership, and that he wanted to take on the challenge. We wish him well," Trevino Flynn said.
Analysts attributed Penney's troubles to competition from discount retailers such as Wal-Mart (WMT: Research, Estimates), Target (TGT: Research, Estimates), and Kohl's (KSS: Research, Estimates), in addition to sloppy management and stores that are unappealing to customers.
Eckerd, is the fourth largest U.S. drugstore chain with more than $12 billion in annual revenue.
Shares of J.C. Penney (JCP: Research, Estimates), which have been trading near 52-week lows of 13-5/8, were unchanged Monday afternoon at 13-15/16 on the New York Stock Exchange Monday afternoon. 
|
|
|
|
|
|
J.C. Penney
more.com
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
