J.C. Penney Closing 138 of About 900 Stores
J.C. Penney, one of the oldest stores on the American landscape, will be closing 138 stores this spring. The closures are taking place in order to improve the success of those stores remaining open. The company presently operates around 900 stores across the country.
J.C. Penney Had Sales of $19 Billion a Decade Ago
The chain of stores had annual sales of $19 billion just a decade ago. Now the annual sales are around $12.6 billion. The retailer fought back after attempting to become a “hipper” chain in 20012.
The store closures will happen in June and liquidation is expected to begin the middle of next month. Last month the company announced it would close up to 140 stores across the US. During that time the company said it would offer a voluntary buyout package to about 5,000 to 6,000 employees.
It has been reported that more than 300 big-box stores will close their doors in 2017. Some of these closures are a result of the pressures on traditional department stores. They are losing market share to off-price competitors and Amazon.
Marvin Ellison J.C. Penney CEO said, “We believe closing stores will allow us to adjust our business to effectively compete against the growing threat of online retailers.”
The company said they are trying to relocate certain leaders and will provide outplacement support services for eligible workers. Wall Street is already predicting that more closures might lie ahead.