J.C. Penney to Shut as Many as 140 Stores as Industry Slumps
- Closings and job cuts are expected to save $200 million a year
- Announcement echoes rival Macy’s plan to trim 100 locations
J.C. Penney Plans to Close as Many as 140 Stores
J.C. Penney Co. plans to shutter as many as 140 stores and trim thousands of jobs, becoming the latest department-store chain to make big moves in a world of lower mall traffic and fierce online competition.
The closings represent as much as 14 percent of the company’s store base and less than 5 percent of total sales, J.C. Penney said Friday. The moves, which also include shutting two distribution centers, will save about $200 million a year.
J.C. Penney’s plan echoes rival Macy’s Inc.’s announcement last year that it would shut about 100 of its stores to adjust to a world where consumers increasingly prefer shopping online to visiting malls. Sales at J.C. Penney, which is still working to recover from a disastrous attempted reinvention, are less than half of their 2002 peak.