JC Penney has announced they are closing 33 stories and will be cutting 2,000 jobs. The company has been getting hit on Wall Street as stocks continue to decline. Sluggish holiday sales and lackluster sales promotions has resulted in the retailer having to make drastic reductions.
Myron E. Ullman, CEO of JC Penney states it was a “difficult” decision to make but a needed one to review “strategic priority,” to ensure the longevity of success for the long-time retailer. The closing and layoffs would result in a $65 million savings for the company, a bolster to their bottom line. The start of closures and layoffs will be forthcoming this year.
The locations targeted for closure include, but is not limited to: Morrow, GA.; West Dundee, Ill.; High Point, NC.; Culpepper, Va.; Des Moines, Iowa and even a JC Penney Home Store located in Duluth, Georgia. In addition, the company’s legacy catalog business and catalog outlets will be closing. There are a total 19 divisions to close under the legacy label. Additional closures will be extended to JC Penney’s furniture stores. Customer call centers in Michigan and New Mexico will also see closures as part of the 2,000 cuts and 33 stores/divisions closing.
The actions, state executives, are a needed point to turnaround depressed sales and boost profitability.
JC Penney Press Release