The Great Restructuring in retail continues.
In the wake of a disappointing holiday season, J.C. Penney (JCP) said recently that it will close 138 stores stores by the second quarter. The store closures represent 13% to 14% of the company's current store base and less than 5% of annual sales. They have a negligible impact on net income. J.C. Penney said same-store sales at the locations were "significantly below" the remaining store base and operate at a much higher expense rate due to poor productivity.
The company expects $200 million in annual costs savings from the efforts.
"We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers," J.C Penney Chairman and CEO Marvin Ellison conceded.
The news shouldn't come as a shock.
As TheStreet reported in January, Ellison said at a real estate conference the company would move to close more stores -- after shuttering seven last year -- following a lackluster holiday season. "We have certain locations that we readily admit we have to downsize," Ellison said, adding, "There are some smaller market locations where we have to decide, does the mall or our store meet our brand standards?"
The store closures by J.C. Penney and others such as Macy's ( M) and Sears ( SHLD) took a toll on retail sector jobs in March. The number of retail jobs fell by 30,000 in March, according to the Bureau of Labor Statistics.
Here are several other retailers continuing to rightsize their store fleet amid the shift to digital shopping or other external pressures.
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