Senior Leadership Development Strategy in Retail Industry

5B USD lost! Discover the critical leadership mistakes that led to

J.C. Penney’s dramatic downfall in just one year. Is your business at risk

Retail Industry and Senior Leadership Insights, Deloitte reported 49% of retail companies experienced a decline in revenue due to leadership failures.


Impacts on business Revenue due to Senior Leadership Failure


Due to senior leadership failure, J.C. Penney's revenue fell sharply from $17.3 billion in 2011 to $12.9 billion in 2012, a decline of 25%. The company reported a net loss of $985 million. Why?

• Poor Strategic Decisions: The appointment of CEO Ron Johnson in 2011 led to drastic and poorly executed changes in pricing strategy, store layout, and marketing, alienating the company's core customer base.

• Lack of Customer Understanding: The leadership underestimated the importance of J.C. Penney’s traditional customer base and made sweeping changes without adequate market research, leading to a decline in customer loyalty.

• Wrong Financial Strategy: The leadership’s failure to manage finances effectively resulted in increased debt and cash flow problems, exacerbating the company’s financial instability.

How to avoid such revenue loss?

Solution is to develop a strong pillar, "Descipline People" taking the senior leadership team as the core brick to form the workforce flywheel effect in business.


Target successfully navigated similar challenges by implementing a strategic turnaround plan focusing on digital transformation, store optimization, and an enhanced customer experience.


Target used the workforce flywheel effect to achieve 10.2% net income , from $2.74 billion in 2016 to $3.02 billion in 2017. Here where their key steps -

• Digital Transformation: Investing in digital capabilities enabled Target to compete effectively in the growing e-commerce market, enhancing convenience and accessibility for customers.

• Store Optimization: By optimizing store layouts and enhancing the in-store experience, Target was able to increase foot traffic, improve customer satisfaction, and boost sales.

• Customer-Centric Strategies: Focusing on personalized marketing and loyalty programs helped Target build stronger relationships with customers, driving repeat business and increasing customer loyalty.

P.S. Among those strategies, which one will be most affordable for you to apply to your company?



Reference sources

• - Deloitte, "Retail Global Powers 2020," 2020
• - J.C. Penney Annual Report 2012
• - Target Annual Report 2017

Author Details
John Masud Parvez, Top International Coach and Business Expert 
More Details: 

• In professional career: Top Business Transformation Expert, CIO
• In entrepreneurial life: Founder of VSHR Group
• In passion life: Keynote / Tedx speaker, Professional Coach