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...
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...
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...
- SOURCING: Production problems weigh on Pakistan
- What next for smart fabrics and garments?
- Smart sportswear faces mass production challenges
- Frank Henke discusses Adidas sustainability agenda
- Innovation and supply chain remain key for Nike
- “Unsafe” Bangladesh factory refuses to evacuate
- Cambodia labour abuse claims disputed
- Major Ethiopia textile build experiences delays
- Garment factory tool to improve communication
- RFID adoption among retailers near “tipping point”
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Outdoor performance apparel: peaks, valleys, and green fields
- Global market review of swimwear - forecasts to 2019