I applaud JC Penney's management on pushing through with store closures as they realize the current trend doesn't require an annual grooming...but something a bit more drastic to return to the more profitable days. Many of the legacy retailers need to face reality and close the long tail of stores driving low returns or negative returns. Sacrifice the few for the many.
Penney said Friday that it will close 130 to 140 stores as well as two distribution centers over the next several months as it tries to improve profitability. The company said that it would also initiate a voluntary early retirement program for about 6,000 eligible employees.
The stores it is closing represent about 13 percent to 14 percent of its current store count of about 1,000, but less than 5 percent of total annual sales.