Tags: jc penney | store | closures

JC Penney Store Closures Could Number 140

Image: JC Penney Store Closures Could Number 140

A J.C. Penney store at the Ford City Mall in Chicago. (Scott Olson/Getty Images)

By    |   Friday, 24 Feb 2017 12:23 PM

J.C. Penney announced store closures over the next few months in hope of saving roughly $200 million annually.

The retailer made its comments Friday to investors, saying that it will shutter from 130 to 140 outlets, CNBC reported. J.C. Penney also will close two distribution centers in an effort to "raise the overall brand standard of the company," CEO Marvin Ellison said, according to CNBC.

The company said that it will release a list of closing stories next month after employees have been notified, CNBC noted. J.C. Penney will close its distribution center in Lakeland, Florida, and transfer those operations to Atlanta, according to a news release on the company's website.

The company also will sell its supply chain facility in Buena Park, California, "in an effort to monetize a lucrative real estate asset," the J.C. Penney statement said.

"We understand that closing stores will impact the lives of many hard working associates, which is why we have decided to initiate a voluntary early retirement program for approximately 6,000 eligible associates," Ellison said in the statement.

"… We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers. Maintaining a large store base gives us a competitive advantage in the evolving retail landscape since our physical stores are a destination for personalized beauty offerings, a broad array of special sizes, affordable private brands and quality home goods and services," Ellison continued.

Ellison said savings from the closures will be redirected to invest in profitable locations and initiatives.

"While many pure play e-commerce companies are experiencing dramatically increasing fulfillment costs, we are pleased with the double digit growth of jcpenney.com and how leveraging our brick and mortar locations is enabling us to offset the last-mile delivery cost," Ellison said in the statement.

J.C. Penney is the latest brick-and-mortar retailer to announce closings, with Sears Holdings saying last month it will close 150 Sears and Kmart stores and Macy's announcing 68 store closings, according to CNN Money.

On the flipside, online retailer Amazon is expected to hire 100,000 workers in the United States this year, CNN Money reported.

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J.C. Penney announced store closures over the next few months in hope of saving roughly $200 million annually.
jc penney, store, closures
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2017-23-24
Friday, 24 Feb 2017 12:23 PM
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