Retail giant J.C. Penney appoints a new head for digital operations
J.C. Penney, the struggling American department store chain, is making a concerted effort to tackle its persistent sales declines, profit losses, and hefty debt load. In a bid to turn things around, the company has appointed Karl Walsh as its new dedicated chief digital officer.
Walsh, with a background in building and executing digital strategies for global brands, previously served as chief digital officer for Pandora Jewelry. His appointment is one of more than a dozen new executive hires by J.C. Penney's CEO, Jill Soltau, this year.
In an omnichannel world, the lines between store and digital sales are increasingly blurred for J.C. Penney. Almost 90% of its customers begin their path to purchase online. With limited financial resources, the company is focusing on improving its digital platforms to return to growth in its digital channel.
Walsh's role at Penney sees him reporting to Chief Customer Officer Shawn Gensch. His primary task will be to build out the company's omnichannel capabilities and improve the experience at its flagship website, jcp.com. Walsh's previous experience with consultancies Boston Consulting Group and McKinsey & Company, as well as his tenure at Levi Strauss & Co. and Walmart, should prove invaluable in this regard.
Walsh's mandate is to improve J.C. Penney's eCommerce offering and drive traffic across all channels. Over the past three years, the retailer has lost about 10% of its online market share to competitors like T.J. Maxx, Marshalls of TJX Cos., Kohl's, Burlington, and Ross Stores. Data provided to Retail Dive this fall by Earnest Research was used to determine the loss of online market share for J.C. Penney.
However, J.C. Penney does not break out its digital sales in securities filings, making it difficult to quantify the exact impact of Walsh's efforts. Nevertheless, the company's hope is that by focusing on its digital platforms, it can regain its lost ground and compete more effectively in today's digital-first retail landscape.
J.C. Penney hired Marc Rosen as CEO in 2021 to address persistent losses, declining sales, and high debt. Rosen initiated a remodeling plan investing over $1 billion by 2025. With Walsh's appointment, it seems the company is taking a comprehensive approach to its digital transformation, aiming to reposition itself for success in the digital age.
Previously, the role of chief digital officer was filled by J.C. Penney's Chief Information Officer Therace Risch. It remains to be seen how Walsh's appointment will impact Risch's role within the company.
