Wednesday, March 13, 2013

Personalizing the News: Autobahn Driving, GOP Stubbornness, A New Pope and Penney Problems


Under snowy conditions Tuesday in Germany, about 100 vehicles crashed on an autobahn near Frankfurt. No doubt, the snow contributed to the massive crack-up. But I also have no doubt the pattern of German driving contributed, as well.

During my first trip to Germany, in 1996 to attend the EuroShop conference in Dusseldorf, I was invited by the team from Boston Retail to tour some stores. They had rented a car, a large Mercedes sedan, with a driver. I sat in the middle of the rear seat with an unobstructed view of the speedometer. German cars measure speed in kilometers per hour. It’s a simple computation to convert the number into miles per hour. Simply multiply it by 60%. 

When the speedometer needled its way toward 160, I could barely contain my anxiety as I also had an unobstructed view of the traffic in front of us, which at that moment was no more than two car lengths ahead. It wasn’t that our driver was a tailgating daredevil. Every driver on the autobahn was spaced the same one to two car lengths behind the car he was trailing. To travel less than 96 miles per hour would endanger all. 

Of course, that means when a car slows down, because of snow, fog or some other reason, there is a chain reaction should any one vehicle not brake to the precise slower speed. Large pile-ups are common in Germany.


All for Naught? Why do we bother holding elections if the party that loses just regurgitates the same garbage that cost them the election? I’m talking about the Republican budget proposal that would slash Obamacare, transform Medicare and reduce other social services programs without asking any more in taxes from the wealthy. It’s the same hogwash that voters repudiated in the last election just four months ago.

Since losing the presidential election to Barack Obama and seeing their ranks in the House and Senate shrink, Republicans have shown little if any inclination to change their national message and appeal. Their only salvation for the moment is their hammerlock on state governments where they have gerrymandered congressional districts into safe GOP seats, safe, that is, if their candidates hew to the hard right to avoid a Tea Party primary. 

Doubtful we will get a legislative branch of government in the short term that will function to the welfare and benefit of the country rather than the partisan aggrandizement of each congressman.


For Old-Time Vatican Watchers Only: As I listened to CBS News correspondent Allen Pizzey report from Rome over the last several days, I was nostalgic for the hushed, clipped tones of Winston Burdett, the network’s Papal eyes, ears and voice during the 1950s and 1960s. His weathered look gave his Vatican reports a certain ancient authenticity, not that Pizzey’s reporting hasn’t been crisp and informative. (BTW, did you know Burdett was a self-confessed spy for the Soviet Union? Rather than throw him under the bus, Edward R. Murrow had him transferred to CBS’ Rome bureau.)

No need to guess about this—with the election of Francis I Tuesday we will be subjected to a stream of articles on the significance of his elevation from archbishop of Buenos Aires to the 265th successor to Peter as the bishop of Rome. Cardinal Jorge Mario Bergoglio is the first pontiff to be elected from the New World, though he has roots in the Old. Before he was born 76 years ago, his parents emigrated to Argentina from Italy.  

In 2005, Cardinal Bergoglio was the runner-up to Cardinal Ratzinger’s election as Pope Benedict XVI. Yet he was not considered a front-runner this time. As he was chosen on the fifth ballot, perhaps he was a compromise candidate, someone who, in Pizzey’s words, while not a fan of the embattled, scandal-plagued Roman Curia, nevertheless is seen as an ultra-conservative and ultra-orthodox cleric not likely to shake up church dogma on such issues as abortion (which many in Argentina favor, according to Elaine Cobbe of CBS) or celibacy for priests. 

The new pope is said to be a humble Jesuit who lives simply and rides the subway to work. Though the trappings of his new office will require lifestyle changes, his emphasis on eradicating poverty and helping the indigent and less fortunate could have political repercussions in the United States where Republican efforts to limit or eliminate programs to help the poor would undercut his mission.

It was speculated the College of Cardinals would choose someone younger. After all, Francis I is only two years shy of  Benedict’s age when he ascended to the papacy. What’s more, he has only one lung. In his appearance before the crowds in St. Peter’s Square, he appeared restrained, barely cracking a smile. Perhaps exuberance is not appropriate at such a solemn occasion, but as the leader of 1.2 billion Catholics beset by numerous ecclesiastical and administrative issues (some would say scandals), Francis I will have to show more energy than he did from the balcony of St. Peter’s.


In the theater world, second acts are among the hardest to pull off. Third acts, almost impossible.

It’s that way in retailing, too; no less a luminary than Gordon Segal, founder of Crate & Barrel said, “Retailing is theater.” Few retail executives have been able to replicate success after success after success at different companies. 

Ron Johnson, the beleaguered CEO of J.C. Penney, is finding that out the hard way. After a notable career as a vice president of merchandising at Target, Johnson stunned the retail world with his evocation of retail nirvana—he developed the Apple Retail Stores. Apple stores boast among the highest sales per square foot in the industry. While almost all other mall stores can be empty on any given weekday, Apple’s are a beehive of activity. 

For sure, Apple products are key attractions. But equally magnetic have been the store design, the attention to detail and customer service, particularly the Genius Bar Johnson pioneered at the back of each location.

It was inevitable Johnson’s success would lead to his recruitment. Penney, though, is a far cry from Apple. Its products don’t have the cache of Apple’s. Apple concentrates on one category of merchandise. Penney is multi-dimensional, which means its messaging is dispersed across many areas, to many different types of customers. Its stores are way larger. Penney’s store staff are not brand proselytizers the way Apple’s are. Apple almost never ran sales; customers came into the stores because they wanted to. Penney had to rely on sales to generate traffic. When Johnson tried to change that by going to an everyday low price strategy, they stopped coming. (Johnson’s disappointment in that tactic is not unique—Food Lion recently pulled its “no sales” platform, as well.) When Johnson came to Apple, he had a supportive leader in Steve Jobs. They worked off a tabula rasa to create a unique store experience. At Penney, Johnson had to work with 100 years of heritage, arteriosclerosis and all. 

Johnson’s latest misstep is his apparent disregard for an exclusive contract between Macy’s and Martha Stewart. He seemed to encourage placement of Martha Stewart products in Penney stores, the result of which has been embarrassing revelations during a Macy’s lawsuit contesting the Stewart-Penney alliance. I won’t go so far as retail analyst Walter Loeb who suggested “this could be a fatal blow to J.C. Penney.” But I do believe it could signal the end of Johnson’s leadership of Penney. His tenure is not helped by the company’s performance in the fiscal year ended February 1: year over year sales dropped by $4.27 billion; the company lost $985 million compared to a loss of $152 million the year before. Share price tumbled by 60%; 2,200 workers were laid off last week.