J.C. Penney to close 130-140 stores in 2017

J.C. Penney announced plans Friday to close between 130 and 140 retail stores in 2017, and arrange early retirements for 6,000 employees. File Photo by Tannen Maury/UPI

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.

LEAVE A REPLY

Please enter your comment!
Please enter your name here