J. C. Penney Company, Inc., announced Jan. 15 it will close 33 “underperforming” stores across the country in order to focus resources on growth opportunities.
Workers at Turlock’s J. C. Penney confirmed that the Turlock store will not be among those closing.
According to J. C. Penney, the store closings are expected to result in an annual cost savings of approximately $65 million, beginning in 2014. The move is just the latest in the company's ongoing search for profitability; the retailer’s stock has dropped nearly 80 percent in the last two years.
"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 Myron E. Ullman, III, chief executive officer of J. C. Penney. "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 J.C. Penney for future success."
The retailer said inventory left from the closing stores will be sold over the next several months, with final closings expected by early May. The company also confirmed that the 33 store closings will result in the loss of approximately 2,000 positions and that “eligible associates” will receive severance packages.
Even with the closings however, the company is continuing with plans to open new stores in more profitable locations. The Turlock location looks safe for the time being.
