FASHION NEWS: J.C. PENNEY CUTS TWO THOUSAND JOBS AND SHUTTING DOWN 33 STORES
The post-holiday hard news continue for employees from major retailers. Following Loehmann’s liquidation of inventory and Macy’s elimination of 2,500 jobs, J. C. Penney is cutting off 2,000 salaries and shutting down 33 stores. It’s been a ruthless year for the discount retailer (CNN Money); it’s stock has fallen over 60% in the past 12 months and the company has been losing hundreds of millions of dollars per quarter. The e-commerce coup, from online sites such as, Amazon.com to Net-A-Porter, has challenged the very core of candid shopping at department stores.
Though this is just a fraction of the discount retailer’s enterprise, J.C. Penney has owned approximately 1,100 stores and has employed 116,000 jobs last year. The closing of such locations is part of the company’s turn-around efforts to focus primarily on the highest-performing locations, according to the J.C. Penney press release from the company. Thirty-three stores have been shut down due to under-performance. The termination of the sites is expected to result in annual savings of roughly $65 million beginning in 2014.
CEO Mike Ullman says this addresses “a strategic priority to improve the profitability of our stores.“
Many reports speculate the impending plummet was imminent for the unlucky venues, and should wrap up around early May. Ron Johnson, an Apple alum, was brought in as chief executive in late November 2011 to boost the department chain’s stagnant stature. He left less than two years later after the continuous quarters of depressed sales and consumers complaints ran the poor bloke out of his post. Former CEO Mike Ullamn was brought back shortly after Johnson’s oust.
The J.C. Penney Company Inc., based in Plano, Texas, is giving Wall Street analysts a run for their money, declining to give sales figures and future sales strategies. Let’s just hope the discount retail chain can indeed baby proof their brand for even mega-successful Macy’s Inc. announced just last week of their decision to cut 2,500 jobs to sustain its profitability. Merchants are struggling these days with the surge of e-commerce dominance. Retailers have to come to terms with these consequences, but how do you feel? Are you still an affluent direct shopper nowadays?
Check the status of your nearby J.C. Penney location here.