Published: Sun, February 26, 2017
Business | By Max Garcia

JCPenney to close 1 in 7 stores, retire 6000 early

JCPenney to close 1 in 7 stores, retire 6000 early

J.C. Penney Co. plans to close up to 140 stores and two distribution centers in the coming months.

He said maintaining large stores allows JCPenney a competitive advantage, and those stores which present "the best expression" of the brand would allow an extension of the online experience through order fulfillment, same day pickup, exchanges and returns.

Things look dismal for USA retailer JC Penney as it has chose to down the shutters on over a 100 stores in the coming months.

The retailer also said it has offered a voluntary early retirement program to 6,000 eligible employees in its home office, stores and supply chain divisions who met certain criteria related to age and years of service as of January 31.

The closure may affect two store locations in mid-Missouri, one at the Columbia Mall and another at the Capital Mall in Jefferson City.

A company map indicates that J.C. Penney operates 79 stores in California. Comps are considered a key indicator of a retailer's health, since they measure only the year-over-year performance of stores open at least 12 months. Total sales declined 0.9 percent to $3.96 billion from $4 billion a year ago.

J. C. Penney Company Inc (NYSE:JCP) early Friday posted better than expected fourth quarter profits, as it swung to its first full-year positive net income in seven years. Net sales fell nearly 1 percent in 2016, although the company enjoyed net income of $192 million after having a net loss of $131 million two years ago. The company is taking this action as part of a plan to align its "brick-and-mortar presence with its omnichannel network". "The company is also implementing a voluntary early retirement program incentive for all eligible associates". The closures and early retirements are expected to save the retailer $200 million a year in payroll and other costs. Chief financial officer Edward Record said those stores account for less than 5% of J.C. Penney's total sales.

"We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers", Ellison said.

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