Tags: jc penney | close | stores | jobs

JC Penney to Close 4 Percent of Stores, Cut as Many as 2,250 Jobs

Thursday, 08 Jan 2015 02:54 PM

J.C. Penney Co. said it will close 40 stores this year, about 4 percent of its locations, as the department-store chain continues its attempted turnaround.

The retailer said in an e-mailed statement that it will try to find jobs at other locations for the 2,250 associates who work at the stores and offer separation benefits for those who leave the chain. Pennsylvania was hit hardest by the closings, with five stores shutting, followed by North Carolina with four.

“We continually evaluate our store portfolio to determine whether there’s a need to close or relocate underperforming stores,” Plano, Texas-based J.C. Penney said in the statement. “Reviews such as these are essential in meeting our long-term goals for future company growth.”

J.C. Penney has been working to restore consistent sales growth and profitability after a failed reinvention that sent its revenue tumbling to the lowest levels in decades. Chief Executive Officer Mike Ullman has stabilized the company since retaking the post in April 2013 and will hand over the reins to Marvin Ellison, a former Home Depot Inc. executive, this year.

In the beginning of each year, most retailers evaluate their store base and decide which locations to keep open, based on performance and other metrics, such as lease terms. In January 2014, J.C. Penney said it would shut 33 stores and cut about 2,000 jobs.

The chain had 1,062 locations at the end of the third quarter. Most of this year’s closings will happen by April 4, the company said.

The retailer said earlier this week that holiday same-store sales rose 3.7 percent, triggering a 20 percent gain in the stock. J.C. Penney said growth by that measure this quarter will be at the upper end of a predicted range of 2 percent to 4 percent. The stock declined 2.3 percent to $7.71 at 11:14 a.m. in New York.

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J.C. Penney Co. said it will close 40 stores this year, about 4 percent of its locations, as the department-store chain continues its attempted turnaround.
jc penney, close, stores, jobs
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2015-54-08
Thursday, 08 Jan 2015 02:54 PM
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