More Store Closings For JC Penney: Financial Woes Continue For The Struggling Retailer

Struggling JC Penney (JCP) continues to have financial woes reporting another sales decline for Q4 2019. Along with its weak earnings report, the retailer said it would be closing more stores.

According to JC Penney, at least six stores will be closed in fiscal 2020. This adds to the 30 stores the company closed in 2019, in addition to the shuttering of a call center, which caused 243 layoffs.

While JC Penney did not indicate which of its stores would be closing, it did say more information about the closures would be available on April 7, when it holds its Analyst Day. To date, JC Penney has about 850 store locations.

The sales decline for JC Penney is not expected to be over just yet, as it said it expected its store sales to fall another 3.5% to 4.5% in 2020. But the company said its operating profit should improve over this timeframe.

JC Penney reported a total net sales decrease for Q4 2019 of 7.7% to $3.38 billion. Comparable store sales for the retailer also decreased by 7% for the quarter.

Under the leadership of CEO Jill Soltau, JC Penney has undergone a holistic turnaround that includes new store formats, a focus on a new denim collection for women of all sizes, and a new outdoor men’s collection under the St. John’s Bay label.

JC Penney has also partnered with thredUP for secondhand clothing sales and continues to look for new ways to innovate its image. The company also exited the furniture and appliance business back in February 2019.

“I am encouraged by our progress, especially in our women’s apparel businesses,” Soltau said in a statement. “We knew it would take time to restore discipline and return growth to JCPenney. As we move into Fiscal 2020, we remain focused on the key tenets of retail as we continue rebuilding the Company and implementing our Plan for Renewal.”

Shares of JC Penney were down 4.1152% as of 12:07 p.m. EST on Thursday.