Feb. 24 (UPI) — J.C. Penney Co. announced Friday it will close between 130 and 140 stores in coming months after disappointing revenue.
It will also close a Florida distribution center and a supply chain facility in California. A company statement said it will begin a voluntary retirement program for about 6,000 eligible employees.
The locations of the stores to be closed were not revealed, but the locations represent about 14 percent of Penney’s stores; they produce 5 percent of the revenue. Most closings will occur in the second quarter of 2017.
Fourth-quarter earnings in 2016 topped expectations, but revenue and same-store figures were disappointing. Earnings per share were 64 cents per share in the fourth quarter; revenue was $3.96 billion and sales growth per store fell by 0.7 percent. In the previous year’s fourth quarter, Penney reported earnings of 39 cents per share on $4 billion in revenue.
The announcement Friday was the first evidence of long-expected changes to improve company retail operations and increase profitability.