J. C. Penney announced on Wednesday that it would close 33 stores across the country, shedding 2,000 jobs, as it struggles to stem losses from a troubled year.
The company said in a statement that the closings and resulting job cuts would result in a savings of about $65 million a year.
One of the oldest retailers in the nation, J. C. Penney has undergone considerable management and investment trouble in the last year or so. It changed chief executives, bringing back a former boss, Myron E. Ullman III, and reverted back to an older retail strategy to try to lure back its most loyal customers.
On Wednesday, the company said it was closing what it determined were “underperforming” stores among its more than 1,000 locations.
Several major retailers have already lowered their profit forecasts, and reported that the holiday season’s sales were fairly static or represented just slight growth over the previous year.
“As we continue to progress toward long-term profitable growth, it is necessary to re-examine the financial performance of our store portfolio and adjust our national footprint accordingly,” Mr. Ullman said in a statement on Wednesday. “While it’s always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position J. C. Penney for future success.”
Despite the closings, Penney said it still intended to open a new store in Brooklyn.
The company said in a statement that the closings and resulting job cuts would result in a savings of about $65 million a year.
One of the oldest retailers in the nation, J. C. Penney has undergone considerable management and investment trouble in the last year or so. It changed chief executives, bringing back a former boss, Myron E. Ullman III, and reverted back to an older retail strategy to try to lure back its most loyal customers.
On Wednesday, the company said it was closing what it determined were “underperforming” stores among its more than 1,000 locations.
Several major retailers have already lowered their profit forecasts, and reported that the holiday season’s sales were fairly static or represented just slight growth over the previous year.
“As we continue to progress toward long-term profitable growth, it is necessary to re-examine the financial performance of our store portfolio and adjust our national footprint accordingly,” Mr. Ullman said in a statement on Wednesday. “While it’s always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position J. C. Penney for future success.”
Penney said it expected pretax charges of approximately $26 million in the fourth quarter of the 2013 fiscal year and approximately $17 million in future periods.
Despite the closings, Penney said it still intended to open a new store in Brooklyn.