JCPenney is making moves to stay afloat after the company’s sales have been in a downward spiral. Wednesday, the department store announced its plan to close 33 stores and eliminate 2,000 jobs by May.
The move could help the retail giant save $65 million a year. The list of closing stores spans almost 20 states and most of them are in small cities in regional malls. (Via JCPenney)
The change comes as Chief Executive Mike Ullman works to strengthen the chain, which according to Bloomberg, has gone nine straight quarters without a profit. Analysts project the company could post a $207 million loss for the current quarter. (Via WBOC)
While the situation may sound dire, an analyst for Morningstar Inc. says "The closing of 33 stores sounds like not all is well … It's also not a massive restructuring." (Via Los Angeles Times)
And, to be fair, JCPenney has some company in this cost-cutting move.
Macy's announced last week it's planning to cut 2,500 jobs and close five stores to save $100 million. The news boosted its shares more than 7 percent. (Via USA Today)
But the same didn't happen for JCPenney. CNN reports its shares dropped 1.1 percent after Wednesday's announcement.
JCPenney is still planning on opening a new store in Brooklyn later on in 2014.
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