Store Closings 2017: JC Penney To Shutter Up To 140 Stores

Despite announcing a positive net income for 2016, J.C. Penney announced Friday that it would be shuttering 130 to 140 of its stores in the coming months.

The mega-retailer also announced that it would be offering around 6,000 employees a “voluntary early retirement program,” USA Today reported Friday. The program will apply to workers who were of particular tenure and age.

Although J.C. Penney exceeded earnings expectations, at 64 cents a share as opposed to the expected 61 cents a share, same-store sales and revenue were lower than expected. The company reported net sales of $4 billion in the fourth quarter of 2016 and disclosed that among its top-preforming divisions during the quarter were its Salon and Fine Jewelry, Home and Sephora divisions.

“This year was not without its challenges, particularly in our women’s apparel business, but I am proud this team delivered on our goal to return our company to profitability in 2016,” JCPenney Co.’s chairman and chief executive officer, Marvin R. Ellison, said in a released statement.

Despite the closure, Ellison remained confident of the company’s long-term goals of vetting brick-and-mortar stores.

“Maintaining a large store base gives us a competitive advantage in the evolving retail landscape since our physical stores are a destination,” Ellison said via CNBC News. “It is essential to retain those locations that present the best expression of the J.C. Penney brand.

The announcement followed a string of recent closures of major retail stores, including Sears and Kmart stores and Macy’s.

Macy’s has announced additional nationwide store closures in previous months and reported Tuesday that it would be shuttering about total stores over the next few years. Macy’s chairman and chief executive officer Terry J. Lundgren also expressed optimism at the company’s approach to its retail strategy, however.

“While 2016 was not the year we expected, we made significant progress on key initiatives that are starting to bear fruit,” Lundgren said in a statement. “These include continued improvement in our digital platforms, the rollout of our new approach to fine jewelry and women’s shoes, an increase in exclusive merchandise and the refinement of our clearance and off-price strategy.”