US: JC Penney to cut 2,000 jobs amid turnaround
Struggling US department store chain JC Penney is to axe 2,000 jobs and close 33 underperforming stores, as part of ongoing efforts to turn around its business.
The move, JC Penney says, is designed to save US$65m a year, starting in 2014. The company expects to incur $26m in pre-tax charges during the fourth quarter of fiscal 2013 and around $17m in future periods.
Inventory in the stores being shuttered will be sold over the next several months, with final closings expected to be completed by early May.
"As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly," said CEO Mike Ullman.
"While it's always difficult to make a business decision that impacts our valued customers and associates, this important step addresses a strategic priority to improve the profitability of our stores and position JC Penney for future success."
The news comes only a week after JC Penney said it was "pleased" with its performance during the holiday period, adding that its turnaround efforts were continuing to show progress.
Last month, the department store retailer posted a 10% increase in November same-store sales. Just a month before, Ullman said JC Penney's turnaround was beginning to take hold and that it was making "significant strides toward restoring JC Penney to its rightful place in retail".
After years of struggling sales, department store retailer JC Penney appointed Ron Johnson as its CEO in 2011, ushering in a new period of dramatic changes. With new management, a new logo, new spokes...
Close to a year after the Rana Plaza disaster, progress on improving worker safety and labour rights in Bangladesh has been painfully slow - but who is responsible for the delays?...
With a large population and high income per head, demand for apparel in the USA is huge -- amounting to nearly US$300 bn during 2012. This has facilitated sustained growth of a number of giant retaile...
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; company rebranding; company restructuring; corporate social responsibility (CSR); fi...
The committee set up to pay compensation to the victims of the Rana Plaza factory collapse aims to distribute US$2m to around 3,600 workers and families before the one-year anniversary of the tragedy ...
This report provides information, analysis and valuable insight on developments relating to the global apparel industry in the following categories: acquisitions, divestments and mergers; corporate so...
- PSF 2014: No one size fits all in apparel sourcing
- PSF 2014: Shifting focus from cost to consumer
- Garment manufacturers eye Myanmar outsourcing
- Bangladesh industry development moving backwards
- Teen retail being rocked by fast fashion headwinds
- Adidas China supplier in discussions over strike
- Gap issues mirror widespread industry challenges
- Bangladesh PM asks clothing buyers to pay more
- H&M "pushing the process" on sustainable fashion
- Adidas plans mobile phone hotline at all suppliers
- Ethiopia – the emerging textile and clothing industry
- Antimicrobial fibres, fabrics and apparel: innovative weapons against infection
- Trade and trade policy: clothing imports, consumer expenditure and trends in five emerging markets: Brazil, Colombia, India, Kazakhstan and Peru, 4th quarter 2013
- Sustainable Textiles for Apparel: Fact, Fiction and Future Prospects
- Jeans in Italy