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...
- Enthusiasm for tech in outdoor apparel on rise
- New American Apparel CEO sees solid platform
- George at Asda on responsible retail journey
- Outlook 2015: What's happening with sourcing?
- Outlook 2015: Challenges and opportunities
- EU exploring responsible garment supply chains
- Gap to close Piperlime division
- Adidas sells Rockport for $280m to focus on sports
- Adidas and Timberland commit to responsible down
- Hanesbrands invests $1.5m in US hosiery plant
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Outdoor performance apparel: peaks, valleys, and green fields
- Li & Fung Limited (494) - Financial and Strategic SWOT Analysis Review
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- E-Textiles: Electronic Textiles 2014-2024