JC Penney Marketing Chief Retires; Incoming CEO To Name Replacement

J.C. Penney Co.'s (JCP) longtime marketing chief Mike Boylson has retired, with his replacement to be chosen by the retailer's incoming chief executive, Ron Johnson.

The senior-level appointment would be Johnson's first as he begins making his imprint on the over 100-year-old retailer. Johnson headed Apple Inc.'s (AAPL) successful retail business before saying in mid-June he would take the top spot at Penney, becoming a member of the board Aug. 1 and chief executive Nov. 1.

Johnson is taking over from Myron "Mike" Ullman, whose departure coincides with activist shareholders William Ackman and Steve Roth taking large stakes in the company and receiving seats on its board.

Choosing a successor for one of Penney's most senior spots--a chief marketer plays a large role in crafting how a retailer is perceived by the public--will be Johnson's way of beginning to put his stamp on the company. Other departures usually occur when a new top executive takes over, as he wants to build a fresh team that often contains trusted business colleagues.

Boylson was with the department store for 32 years, the last eight as chief marketing officer. He said in June he would retire from the company on July 1, a J.C. Penney spokeswoman said. Johnson will name Boylson's replacement, she said.

"I'm surprised he left," said Bernard Sosnick, retail analyst at Gilford Securities. "Penney has seemingly been satisfied with many of its marketing programs," including contact through social media and its arrangement to be the exclusive retail advertiser during the Academy Awards.

Boylson helped support Penney's launches of private and exclusive brands with contemporary stylings. The lines include Liz Claiborne Inc. (LIZ), MNG by Mango and American Living by Polo Ralph Lauren Corp. (RL).

In the interim, Bill Gentner, previous senior vice president of marketing planning and promotions, will serve in the position previously held by Boylson.

The departure comes as Penney is getting into the midst of back-to-school season, typically one of the biggest market marketing periods of the year.

"Back to school is more important for Penney than most retailers," said Bernard Sosnick, retail analyst at Gilford Securities. "Penney is a huge retailer of jeans and attracts more teenagers" than any other anchor store in malls, he said.

J.C. Penney has a lot riding on the back-to-school season. Analysts say the retailer continues losing market share to rivals such as Macy's Inc. (M) and Kohl's Corp. (KSS).

In its most recent monthly same-store sales report, for June, Penney posted a 2% rise, when 2.3% was expected, and cut its second-quarter earnings view.

-By Karen Talley, Dow Jones Newswires; 212-416-2196; karen.talley@dowjones.com

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