J.C. Penney announced Monday that CEO Ron Johnson would be replaced on an interim basis by Mike Ullman, the retailer's former chief executive.

Johnson, 54, was hired in late 2011 from Apple, where he led the company's highly successful retail store chain. His plans with J.C. Penney were to reinvigorate the chain in to a fashion-forward, hipper brand, according to USA Today.

The strategy from the CEO of dropping coupons for an everyday low price strategy was dropped, which backfired because it took away long-time customers. There were slumping holiday sales, along with a battle with rival Macy's over home fashion maven Martha Stewart and increasing shareholder unrest over Penney's slumping stock price, according to USA Today.

The company underwent tremendous change as we began shifting our business model from a promotional department store to a specialty department store," Penney said in its proxy. "Fiscal 2012 was tougher than expected."

As of 2010, there is 1,106 J.C. Penney stores, according to United States Security and Exchange Commission.

J.C Penney shares sank 44% last year -- Johnson's first full year as CEO -- and had slumped another 25% through last week. Word of his departure pushed the stock up 9% in after-hours trading. But that was before news that Ullman -- CEO from 2004 to 2011 -- was returning. The stock was down 6% to $15.25 in later after-hours trading.

Retail guru Kathy Gersch of Kotter International said "the patience ran out and the money ran out" for Johnson's strategies. "He pulled some bold moves pretty quickly. Most were taking them in the wrong direction without a clear sign of when they might get traction."

In February, the company reported an adjusted fourth-quarter loss of $427 million, or $1.95 a share, far below Wall Street estimates. For the full year, Penney lost $985 million, or $4.49 a share.

"This was one large test that failed and we all learned something in retail we already knew, that the consumer is ultimately in control of this process and you can't disregard her," Ellis Verdi, president of ad agency Devito/Verdi said. "He took away the control. The consumer wants that control, to know they're getting a great deal. J.C. Penney at its best is still not great. That's the bigger issue. It's still an old brand."