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JCPenney Store Closings

Jan 16 2014, 2:58am CST | by , in News | Other Stuff

Penney Store Closings
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JCPenney is to close at least 33 of its stores nationwide. And the downsizing of some 2000 individual jobholders is in the J.C. Penney cards as well. Apparently these moves will lead to savings amounting to $65 million per annum for the troubled chain of superstores.

The ultimate motive behind anything is profit (of any kind). And J.C. Penney is no exception to the rule. Like many other retailers and business enterprises that have chosen lean thinking, the superstore chain has decided to make some radical changes in its setup. 

About 33 of its outlets are to be shut down for good. Along with this at least 2000 jobholders are to be laid off duty too. The whole plan is being followed in order to benefit the coffers of the company. An estimated amount of $65 million will accrue to the big bosses sitting at the top.

“The closing of 33 stores sounds like not all is well,” Paul Swinand, an analyst for Morningstar Inc. in Chicago, said. “It’s also not a massive restructuring.”

The economically troubled times that exist at present have hit the store pretty hard. The shedding of load in the form of venues and individuals is being done so as to recover from these dismal conditions. Whether it will prove successful in reality is another thing altogether. The Christmas season sales didn’t go too well either. 

Several other stores throughout the United States have acted likewise and done an about turn. Macy’s is a classic example. It is to lay off 2500 people in a bid to recover from the downward spiral it is currently facing. There are some who have questioned J.C. Penney’s motives but usually in the real world what you see is what you get.   

Source: Bloomberg

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