GO
Loading...

JC Penney ‘Breaks My Heart’: Baskin

Friday, 15 Mar 2013 | 1:53 PM ET
JCP 'Breaks My Heart': Baskin
Friday, 15 Mar 2013 | 12:33 PM ET
Struggling retailer JC Penney has lost control of its message as it attempts to turn around its sales performance, says Jonathan Salem Baskin, founder of Baskin Associates.

J.C. Penney's attempt to turn around its poor sales performance by announcing a new clothing line has yet to show a long-term strategy, Baskin Associates founder Jonathan Salem Baskin said Friday on CNBC.

The struggling retailer said that it would introduce a collection from Canadian-based brand Joe Fresh by Joe Mimran.

But that hardly seemed enough to turn around the company's fortunes, Baskin said on "Fast Money."

"The problem is that Joe Fresh isn't the next iPhone," he said, adding that he had seen "the same kind of stuff at Sears and at Target."

Baskin said that he was a believer in the no-sales strategy that CEO Ron Johnson introduced upon taking the helm of JC Penney more than a year ago.

"And it breaks my heart that he hasn't implemented it," he added, noting that pricing strategy within the retail sector was "a profoundly important issue."

While praising Johnson's vision, Baskin also faulted him for not providing objective, measurable goals.

"I would tell him: Stop making a bunch of promises you can't deliver on," he said.

Baskin drew an analogy to how Samsung quietly took significant market share from Apple in the smartphone market, Johnson's former employer.

"Samsung snuck up on all of us with the success with the Galaxy," he said. "It's not like they announced, 'We are going to kill iPhone in Asia.' They simply did the due diligence."

(Read More: JCP Bets on Canada's Joe Fresh)

Baskin also said that J.C. Penney's latest retail campaign wasn't necessarily representative of its broader outlook.

"Joe Fresh, whether it sells or not, whether it sells this week or next week, isn't going to tell us anything about whether or not the business is on the path to recovery long-term," he said.

Trader disclosure: On March 15, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long stock short calls JPM; Jon Najarian is long BBY; Jon Najarian is long STX; Jon Najarian is long EMC; Jon Najarian is long stock long puts MS; Jon Najarian is long SWN; Pete Najarian is long stock AAPL; Pete Najarian is long calls BAC; Pete Najarian is long calls C; Pete Najarian is long calls JPM; Pete Najarian is long stock INTC; Pete Najarian is long stock YHOO; Pete Najarian is long stock BBRY; Pete Najarian is long stock SBUX; Pete Najarian is long stock FB; Pete Najarian is long stock GOOG; Pete Najarian is long calls FCX; Pete Najarian is long stock MSFT; Joe Terranova is long VRTS; Joe Terranova is long SJM; Joe Terranova is long MJN; Joe Terranova is long SCCO; Joe Terranova is long PANW; Joe Terranova is long VSI; Joe Terranova is long AXP; Joe Terranova is long GPS; Joe Terranova is long KORS; Joe Terranova is long GS; Joe Terranova is long SWN; Enis Taner is long GS; Enis Taner is long AMGN; Enis Taner is long AMZN puts; Enis Taner is long SODA call fly; Enis Taner is long CMI put fly.

  Price   Change %Change
JCP
---
SHLD
---
TGT
---
RETAIL
---

Contact Halftime Report

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.