JCPenney will close 27 of its 860 stores this year, a result of continuously dropping profits.
The closures will include three previously announced department stores, 15 more full-line department stores and nine home and furniture stores, the company said in a statement Thursday. Nearly all of the impacted stores are expected to close during the second quarter of 2019.
Comparable sales at JCPenney fell 4 percent in the fourth quarter of 2018, down a total 3.1 percent for the year. Net sales for the fourth quarter dropped 9.5 percent. The company's net loss of $255 million far exceeded its $75 million net income for the quarter. Net income was $242 million the same quarter of the previous year.
"In spite of our past financial performance, we have already taken meaningful steps to drive improvement in key businesses such as women's apparel, active apparel, special-sized apparel and fine jewelry," said Jill Soltau, CEO of JCPenney.
The stores set for closure require significant capital, don’t yield the profits of other stores or offer the company a way to make money on a real estate transaction, according to the statement. Employees impacted by closing stores will receive separation benefits including assistance in finding a new job and outplacement services.
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