NEW YORK (WWJ/AP) – J.C. Penney says it will be closing anywhere from 130 to 140 stores as well as two distribution centers over the next several months as it aims to improve profitability in the era of online shopping.
The closures, announced Friday, represent about 13 percent to 14 percent of the company’s current store count, and less than 5 percent of total annual sales.
The news came as Penney posted a profit in the fourth-quarter compared to a loss a year ago. The company posted quarterly sales of $3.96 billion, down 0.9 percent from $3.99 billion a year ago. Revenue at stores opened at least a year was down 0.7 percent.
J.C. Penney is joining other department stores like Macy’s in shrinking its footprint amid challenges in the industry.
Marvin Ellison, chairman and CEO of J.C. Penney, said decision to close stores “will allow us to raise the overall brand standard of the Company and allocate capital more efficiently.”
It’s unclear at this time how many, if any, Michigan locations will be closed. The company said it plans to release a full list of planned closures in mid-March pending notification of all affected personnel.
Nearly all impacted stores are expected to close in the second quarter of 2017.
© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.