J.C. Penney to cut 2,000 jobs, close 33 underperforming stores

[TexasTowelie]

Source: Dallas Morning News

J. C. Penney Company Inc. on Wednesday said it will close 33 under-performing stores across the country and eliminate about 2,000 jobs. The closures will help it focus resources on its “highest potential growth opportunities.”

None of the closures is in Texas but the company is closing five stores in smaller markets in Wisconsin.

These actions, taken as the Plano-based retailer looks to regain sales, are expected to result in an annual cost savings of about $65 million, beginning in 2014, the company said.

"I think they're doing what they have to do, which is think strategically about how to stem losses," said Paul Trussell, an analyst with Deutsche Bank Securities.

Read more: http://www.dallasnews.com/business/retail/20140115-j.c.-penney-to-cut-2000-jobs-close-33-underperforming-stores.ece

[Gordon Alf Shumway]

1. It sure looks like the Death Spiral begins ...

Last CEO paid $ Millions to take struggling company and screw it up (possibly) beyond repair.

[Demeter]

2. Death spiral indeed

and there's nothing going to stop it: no extended unemployment, no raise in the minimum wage, no federal jobs program, and lots of wishy-washy over "states rights".

[yeoman6987]

3. Conservative's Reasoning

This is sick. I heard they are blaming the gay agenda on JC Penny's troubles. They say that they were catering to gays and deserve what they get. This sick bastids make me ill. JC Penny's was in trouble way before they did the equality campaign. I am so sick of conservatives and their nonsense. They are actually cheering this. So dang sick!!!!!

[Gordon Alf Shumway]

7. Ron Johnson's disastrous marketing decisions ...

We know what put JCP in this fix. But I suppose some can always rationalize that God compromised CEO Johnson's judgement in retaliation for him being too Gay friendly ...

[Recursion]

9. This buys them a year, maybe

It's still ultimately a defunct business model: too many SKUs, depending too much on people being "out shopping" and seeing something they like.

[myrna minx]

4. Oh no - that's one of the anchor stores in my hometown's mall.

That's awful!

[TexasTowelie]

5. I haven't found a list, but here is what I'm seeing in various news accounts:

5 in Wisconsin
3 in Pennsylvania
2 in Illinois (Bloomingdale and Forsyth)
2 in Florida

[DebJ]

14. Probably in my dead/dying town of York Pa. n/t

[TexasTowelie]

16. No, York was spared.

The list is in post #15.

[1000words]

6. Macy's did almost exactly the same, last week.

Happy New Year.

[belltower]

8. great just what i want to see

I want all the Big Boxes to close -- I want locally-based economies to flourish and the longer those fuckers have stores everywhere the longer locals won't have theirs. Close 'em down! Drive 'em out! Stop patronizing the Big Boxes!

[Recursion]

10. What's your plan to employ the people who work for the boxes now?

Mom & pops only need a mom and a pop...

[belltower]

12. it's called "creative destruction"

and please don't throw labels like "capitalist" at me though at times, the shoe fits.

furthermore, there's nothing intrinsically wrong with small business.

We hardly "need" the massive waste of the present Big Box culture.

[Recursion]

13. I'll cop to being a capitalist

But there's waste on both sides here; mom & pops don't have any economies of scale.

[Angleae]

11. The only thing that will replace them is WalMart and online ordering.

[DebJ]

15. Here's a list at link.

http://abcnews.go.com/Business/wireStory/list-33-jc-penney-stores-closing-21549973

On edit, a better list:
http://www.huffingtonpost.com/2014/01/15/jc-penney-closing-stores_n_4604436.html

[MadrasT]

20. Not shocked a bit to see Exton PA on that list.

30 years ago, Exton was a sleepy intersection with a crappy little mall with Sears, JCP, Strawbridges, and a handful of cheesy little shops like Spencers in between (we loved the mall anyway because it was literally the only place to shop).

Today it is a giant clusterfuck of shopping hell. Off the top of my head retail space in Exton has increased like 1000% in the last 30 years.... There are too many stores in too small an area.

Also, Chester County is the wealthiest county in PA and all the snotty rich people who are moving in and CROWDING MY COUNTY think they are too good for JCP. Population increased 20% from 2000 to 2010 and it's all McMansion dwellers.

I expect the Exton Sears and the Exton KMart will be next.

[moondust]

17. Montgomery Ward, Sears, ...

Wiki: All of Montgomery Ward was liquidated by the end of May 2001.

Local mall's Sears anchor store w/auto center closed a year ago and is still empty despite seemingly heavy mall traffic.

[TexasTowelie]

18. It's the reverse at the mall in Irving.

The business at the mall is slow and the auto center at Sears is one of the drawing points. JC Penney's closed their store about 10 years ago. The Dillard's store is a wholesale outlet of picked over items, although I did find some nice neckties there at very low prices. The Barnes & Noble store moved out a few months ago. Macy's and Burlington Northern are the primary anchors at the mall now.

I went to the mall about ten days before Christmas at about 5 p.m. and the weather was decent. There was very little traffic considering that it. There were a lot of vacant spaces in the mall and a discount clothing store opened in the old Barnes & Noble space. However, if any of those businesses were depending on holiday sales to meet their margin for the year then they might be closing also.

[DeSwiss]

19. All from self-inflicted wounds.

- What a lovely bunch of coconuts. The board of directors should not forget to fire themselves last......

K&R