While the prolonged European economic crisis and the Facebook IPO no doubt distracted investors this week, other noteworthy stock news transpired. Three major retailers were bruised and battered. Let's recap some of the week's carnage.

Penney for Johnson's thoughts
J.C. Penney (NYSE: JCP) shares plunged 20% on Wednesday as it reported first-quarter losses. Restructuring expenses weighed on its bottom line, and revenue and margins weakened. As newly dubbed "JCP" undergoes massive rebranding efforts, CEO Ron Johnson struggles to revive the department-store chain.

Johnson, formerly of Apple, knows a thing or two about driving up revenue per square foot in a retail environment. But can he turn around the flailing retailer before it's too late? Hedge fund manager Bill Ackman, who owns a huge stake in the company, thinks so. He pleads for patience from investors and states that JCP has "all the requirements for a turnaround."

Meanwhile, competitors such as Sears Holdings (Nasdaq: SHLD) kick back and enjoy the view. Sears' stock rallied after its first-quarter loss was smaller than expected.

Trouble continues to brew
Green Mountain Coffee Roasters (Nasdaq: GMCR) fell only modestly this week, but it's down by more than 50% so far in May after reporting that it missed sales expectations for its K-Cup coffee refills. Green Mountain's upcoming patent expirations, questionable sales channels, and shaky financial practices have come into question frequently since hedge fund manager David Einhorn launched his scathing criticism of the company last October. And if that wasn't enough, securities lawyers are now undertaking an investigation into Green Mountain's top brass for violating shareholder-protection laws.

Last week, SodaStream (Nasdaq: SODA) looked like an unfortunate victim of Green Mountain's ongoing calamities. While Green Mountain and SodaStream stock prices often move in tandem because of their parallel "razors and blades" model, the similarities end there. SodaStream posted strong quarterly results last week and appears poised to move forward strongly, although it, too, has declined this week with the overall market.

Not a pretty week for Avon
Shares of Avon (NYSE: AVP) fell more than 10% on Tuesday, after Coty withdrew its $10.7 billion buyout offer. The bid had not only been increased by Coty but also had the backing of Warren Buffett. Fragrance maker Coty effectively slammed the door on the beauty seller, stating its intention to move on to pursue other opportunities, with reports that it's planning to go public in the U.S. market. This comes after Avon failed to explain to Coty why it was taking more time to respond to its proposal.

While it was a rough week for these companies, my Foolish cohorts have found one retailer that they are incredibly excited about. Read about this one stock in the free report "The Motley Fool's Top Stock for 2012."