On Wednesday, J.C. Penney said it will be closing 33 stores and cutting 2000 jobs around the country in a bid to restore its fortunes. Most of the stores closing will be in smaller cities where their might be other retailers in the area. At the moment, the cities losing stores are Salisbury, MD., Bristol and Norfolk, Virginia.
The announcement was the latest move by the Texas based J.C. Penney to restructure its operations due to the company’s stock going down 60 percent last year. This announcement comes after Macy released a statement last week planning to eliminate 2,500 jobs and reorganizing its stores to cut cost.
Many retailers have struggled during the holiday season due to the deep sales discounts. During the holiday season J.C. Penney focused on its in-house stock brands and returned to a strategy of frequent sales and discounts. It’s too early to tell if the actions taken during the holiday season will succeed. J.C. Penney has not disclosed its sales data, however they are pleased with their holiday performance.
Chief executive Myron Ullman said in a statement, “as we continue toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly.”
The holiday shopping season was expected to be tough especially on discount retailers. However, high-end retailers such as Tiffany and Neiman Marcus have reported record breaking numbers. Discounters such as Target have lowered their profit estimates for the time period.