J.C Penney closing up to 140 stores.

[Deleted]

www.9news.com/money/jc-penney-store-closings-/413933791

Interesting - women's clothing is struggling. I can see that. 


USA TODAY - J.C. Penney (JCP) plans to close up to 140 stores and offer buyouts to 6,000 workers as the department-store industry sags in competition with online sellers and nimble niche retailers.



The company said Friday that it would shutter 13% to 14% of its stores, representing about 5% of its annual sales, and two distribution centers.



The retailer expects to save $200 million in annual costs in connection with the plan but will record an initial pre-tax charge of $225 million to cover the closure costs.



In a related move, Penney said it would offer a "voluntary early retirement program" to about 6,000 workers, including corporate, store and supply chain workers.



The cuts come amid mounting challenges for once-stalwart department-store chains such as Macy's and Sears, which are aggressively closing stores and shedding costs as shoppers flock to alternatives.



"We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers," CEO Marvin Ellison said in a statement.



"Maintaining a large store base gives us a competitive advantage in the evolving retail landscape since our physical stores are a destination for personalized beauty offerings, a broad array of special sizes, affordable private brands and quality home goods and services."



Penney also said Friday that sales at stores open at least a year fell 0.7% in the fourth quarter, which includes the crucial holiday shopping season. Overall, net sales were down 0.9% to $3.96 billion, while the company swung from a loss of $131 million to net income of $192 million.



But the company said that discounts dragged down profitability and warned that its women's clothing business struggled.



The company's stock fell 1.6% in pre-market trading to $6.75.



Despite the difficulties, Penney turned a full-year net profit for the first time since 2010, reflecting considerable progress after a brief period in which the company experimented with limiting discounts.



Encouraging signs included sales of home goods, Sephora products, the salon division and fine jewelry. Penney also said it had "record" online sales during the holiday shopping season, without providing figures.



Follow USA TODAY reporter Nathan Bomey on Twitter @nathanbomey.



Copyright 2017 USA TODAY

[SA]

There's too much other cheap competition.

On the flip side:
Whole Foods is starting to close down stores. We're losing one here in a very busy shopping center. I know, not clothing related. JCP doesn't surprise me, but WF does.

[Deleted]

It doesn't surprise me either with JCP. I don't understand why these stores don't go lean and stick with what is successful. Sears for example - they sold off Craftsman. That name use to have quality associated with it. Not so much anymore. They should have gone strictly tools, automotive and appliances.

I think the Whole Foods in Boulder closing as well. If they can't survive in Boulder, then they have serious problems. Not sure how Sprouts or Alfalfas is doing. Too much competition for a relatively limited market. I love Sprouts, but I still do the majority of my shopping at King Soopers/Safeway. During the Summer I hit the farmer's markets. Hmmm... maybe that's part of their problem. We have a lot of farmer's markets in Colorado. Miller Farms is one of the big ones and they have a $10 fill a bag deal.

[Deleted]

I actually really like our JCP - they have a great housewares dept and they used to have nice furniture, but they recently ditched that for large appliances. They also do custom-ish window treatments (blinds, etc. sized to order) and have nice off the rack drapes.

[Deleted]

Carla - what you're saying goes along with the article.

Encouraging signs included sales of home goods, Sephora products, the salon division and fine jewelry. Penney also said it had "record" online sales during the holiday shopping season, without providing figures.

[val2525]

WF closures doesn't surprise me at all. There's a reason the WF nickname is "Whole Paycheck".

Sprouts is cheaper and has a much larger food selection. Plus mainline grocers are getting into the organic/health food market as well. Smiths (Krogers) has a store label organic line that is really good and much better priced than WF.

[pyrexandpearls]

Whole Foods doesn't surprise me either. I used to go there once in a while for Steaz green tea but I can find it at Costco now.

I love JcPenney and hope they don't shutter them here in Omaha. Their Worthington dress pants are my go to work pants and fit nicely. I find they have decent business/business casual clothes I need for work at fair prices.

[SA]

Here in the Springs we have Natural Grocers and Sprouts competing with them. We just got a new NG in the last year. They're building a new Sprouts practically across the street from where the WFs will be closing. Plus Costco carries a lot of organic now. AND we're getting a King Soopers Market pretty soon too - which from the sounds of it is just a KS on steroids. And I love KS!

My JCPenny is just OK. The lady that does my hair works at that salon, so I walk through the store before getting my hair done. I don't buy much there at all, but I'll look around if there's a deal.

[chapeaunoir]

Feb 25, 2017 3:40:21 GMT val2525 said:

WF closures doesn't surprise me at all. There's a reason the WF nickname is "Whole Paycheck".

Sprouts is cheaper and has a much larger food selection. Plus mainline grocers are getting into the organic/health food market as well. Smiths (Krogers) has a store label organic line that is really good and much better priced than WF.

Yeah, we call it Whole Paycheck, too.

We can get most of that stuff just at the store, plus we have our own Co-Op, Puget Sound Co-Op which has reasonable prices and lets anyone shop there, members get a discount.

I don't know how WF survive here - organics and whole foods have been around for ever (called farmer's markets), they are nothing new. Not sure how it all got trendy. So they essentially bring nothing to the market save for high prices and a nutcase CEO. The one in Portland seems to do well, though.

I used to get most of my clothes at Penny's - they had a great juniors department until junior clothing turned into sleazy ho' clothes about 10 years ago. I didn't buy housewares there because I normally don't buy things like that, but it used to be the go-to place for that. They're smart for changing their product line, not dumb like Sears who wants to toss their's out.

ETA: Yes, I liked Worthington and I think they have Hunt Club? When I was in the corp world I wore a lot of it for my office attire, and I was a manager and had to represent about 25 people - they washed and wore well and I always looked put together.

[zoesam]

Feb 25, 2017 2:05:25 GMT SA said:

There's too much other cheap competition.

On the flip side:
Whole Foods is starting to close down stores. We're losing one here in a very busy shopping center. I know, not clothing related. JCP doesn't surprise me, but WF does.

SA , that WF is a very atypical situation.  It was a Wild Oats & then became something else (or vice versa) in a very short time, then WF bought it out, but never really made it into a real WF.  There were always many differences between that WF & every other one I went into & for some reason, they never seemed to want to upgrade it to a normal store that matched the rest of their brand.  I wouldn't be surprised if they open another store soon, while closing that one down, it has always been a red headed stepchild.  I don't think it's indicative of how the brand does here, as like you pointed out, natural & organic grocers are expanding here.  Hopefully we'll see another WF or two soon down here.  I wouldn't be surprised.  I avoided that one after it became clear they were never gonna make it like the others.  Plus, the other one is much closer to my house & was a new store from the get go. 

ETA:  Or maybe I'm wrong abt the brand.  I'm not wrong about that store, it's had a weird history, but yeah, I see both Boulder & Capitol Hill are closing?  Wow! It's a little hard to fathom it closing in Boulder.  What a bummer!