Penney to shed 33 stores, cut 2,000 jobs to stem losses

[Eugene]

Last edited Wed Jan 15, 2014, 08:56 PM - Edit history (1)

Source: Reuters

Penney to shed 33 stores, cut 2,000 jobs to stem losses

BY PHIL WAHBA
NEW YORK Wed Jan 15, 2014 6:02pm EST

(Reuters) - J.C. Penney Co Inc (JCP.N) said on Wednesday it will close 33 stores and cut 2,000 jobs as part of the struggling retailer's efforts to return to profit.

Chief Executive Myron Ullman in a statement called the move an important step that "addresses a strategic priority to improve the profitability of our stores."

Penney, which operates about 1,100 mid-market department stores in the United States, is trying to stanch enormous losses and win back shoppers after suffering a 25 percent drop in sales in fiscal 2012 during a failed attempt to go upmarket.

It has returned to the discounts that were long its hallmark and brought back popular in-house brands.

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Read more: http://www.reuters.com/article/2014/01/15/us-jcpenney-turnaround-idUSBREA0E1L820140115

[Warpy]

1. They did two things: ended the fake sales that appealed to its customer base

and completely forgot who that base consisted of. Rebranding was a flop and so was repricing.

It's not the only place a new CEO has fouled up. See: Sears/K Mart.

[golfguru]

2. JC Penny can succeed if they copy a simple formula...

Import goods from China.
Avoid unions.
Design stores which have every thing including groceries.

for example: Wal-Mart

[Warpy]

3. No, the customer base is different

and has to/will survive outside the Wal Mart formula.