JCPenney will be closing 33 stores nationwide and will cut 2,000 jobs, the company announced Jan. 17. The store closings are for those that are underperforming as the retailer tries to get back on the path to profitability.
CEO Ron Johnson’s aggressive reinvention plan drove away more than a million of JCPenney’s customers. Even though Johnson was fired in April, his legacy continues to haunt the business.
“JCPenney’s rebirth is unfolding, but the huge issue is that it’s moving extremely slowly, causing inefficiencies at the store that diminish the promotional and marketing initiatives being undertaken by management to rebuild customer relationships,” Sozzi says.
The cuts announced Friday should save more than $65 million annually. The company will take $26 million in pretax charges in the third quarter and $17 million in future quarters. JCPenney has 116,000 staffers and operates more than 1,100 stores. All the job cuts are related to the store closings.
After the holiday season, stores typically re-evaluate their store fleet and announce job cuts and store closings. However, analysts believe that after a tough holiday season, the cuts will be deeper than normal. Stores are also contending with a shift in consumer spending to PCs and mobile devices.
Here’s a list of the JCPenny stores which will be closed by early May:
- Selma Mall in Selma, Ala.
- Arrow Plaza in Rancho Cucamonga, Calif.
- Chapel Hills Mall in Colorado Springs, Colo.
- Meriden Square in Meriden, Conn.
- Lake Square Mall in Leesburg, Fla.
- Gulf View Square in Port Richey, Fla.
- Muscatine Mall in Muscatine, Iowa
- Stratford Square Mall in Bloomingdale, Ill.
- Hickory Point Mall in Forsyth, Ill.
- Five Points Mall in Marion, Ind.
- Marketplace Shopping Center in Warsaw, Ind.
- The Centre at Salisbury in Salisbury, Md.
- Westwood Plaza in Marquette, Mich.
- Northland Mall in Worthington, Minn.
- Singing River Mall in Gautier, Miss.
- Natchez Mall in Natchez, Miss.
- Butte Plaza Shopping Center in Butte, Mont.
- Cut Bank, Mont.
- Vernon Park Mall in Kinston, N.C.
- Burlington Center in Burlington, N.J.
- Phillipsburg Mall in Phillipsburg, N.J.
- Wayne Towne Plaza in Wooster, Ohio
- Exton Square Mall in Exton, Pa.
- Laurel Mall in Hazleton, Pa.
- Washington Mall in Washington, Pa.
- Northgate Mall in Chattanooga, Tenn.
- Bristol Mall in Bristol, Va.
- Military Circle Mall in Norfolk, Va.
- Forest Mall in Fond Du Lac, Wis.
- Janesville Mall in Janesville, Wis.
- Lincoln Plaza Center in Rhinelander, Wis.
- Cedar Mall in Rice Lake, Wis.
- Wausau Mall in Wausau, Wis.