J.C. Penney Must Fix its Sourcing to Fix its Business

Fixing sourcing is among the many challenges J.C. Penney's CEO Mike Ullman faces. Few retailers have ever decimated their sourcing department and trampled on trusted relationships established in foreign countries, especially the Far East, like J.C. Penney did under Ron Johnson. Mr. Johnson, the hapless CEO who believed he could change J.C. Penney's mantra by focusing on famous national brands, ignored the unique strength of J.C. Penney private labels. These private brands registered billions of dollars in sales and represented fashion and value to the J.C. Penney customer.