Editor’s Note: This article was first published on October 2, 2018.
New York
UJ Business
—
Jill Soltau, an experienced leader in retail, previously heading Joann fabric and craft stores, is expected to revitalize JCPenney.
The company announced on Tuesday that Soltau will assume the role of chief executive starting October 15. JCPenney has been without a leader since Marvin Ellison departed in May for the top position at Lowe’s.
At 51, Soltau will become the 25th woman currently overseen a Fortune 500 company, according to Fortune magazine. She will be JCPenney’s fifth CEO over the last ten years.
Soltau’s starting salary is set at $1.4 million, accompanied by a $6 million signing bonus and the possibility of performance-based bonuses each year.
Following the announcement, Soltau’s appointment was positively received by investors, reflected in a 10% rise in stock during after-hours trading.
Soltau is poised to tackle a challenging mission: reviving JCPenney (JCP), a former retail giant that has seen its stock drop over 50% this year, nearing a price of $1.50 per share. The company is currently without a CFO, as Jeffrey Davis resigned last week after 14 months in the role.
JCPenney faces significant challenges, including a debt exceeding $4 billion and profitability in just two of the last four years, with a loss of $101 million reported in the most recent quarter.
Meanwhile, competing retailers like Nordstrom (JWN), Kohl’s (KSS), and Macy’s (M) have successfully adapted their businesses for the digital age.
Soltau will need to make difficult choices regarding JCPenney’s store presence, as the company operates 860 locations, many situated in declining malls. Additionally, there is an overflow of unsold merchandise accumulating in stores and warehouses.
The company has been on the lookout for a leader possessing merchandising skills to enhance their selections in-store.
“Our search was focused on finding someone with extensive apparel and merchandising experience, and Jill emerged as the perfect candidate,” stated board director Paul Brown in a press release.
Soltau joined Joann in 2015 and has also worked for Shopko, Sears, and Kohl’s in various roles.
JCPenney’s choice of Soltau indicates a desire to shift away from Ellison’s leadership approach.
Ellison, who previously worked at Home Depot, brought JCPenney into the appliance market. However, his results were varied: major appliances failed to attract significant interest, leading to a decline in clothing options.
JCPenney believes its primary customer base consists of middle-aged women. Recently, the company launched Artesia, a new affordable women’s fashion line priced under $30.
