J.C. Penney to close 40 stores

Plano, Texas – It will not be a happy New Year for employees of some 40 J.C. Penney stores. The company on Thursday said that it plans to close approximately 40 stores, which represent less than 4% of its total store base, on or about April 4, 2015. The closures will affect about 2,250 employees.



Penney is moving ahead with the closures even as it just reported a 3.7% increase in same-store sales during the holidays (the nine-week period from November through December). The retailer also said that it expects its fourth-quarter comparable sales will be at the top end of its forecast range of a 2% to 4% gain. Penney stores that will be closed include locations in Providence, Rhode Island; Rutland, Vermont; Oshkosh, Wisconsin; and the Ohio cities of Columbus, Springfield, and Greenville.



"As with most retailers, we continually evaluate our store portfolio to determine whether there's a need to close or relocate underperforming stores," Penney spokesperson Joey Thomas said in an emailed statement sent to Masslive.com. "Reviews such as these are essential in meeting our long-term goals for future company growth. While it's never an easy decision to close stores, especially due to the impact on our valued associates and customers, we feel this is a necessary business decision."



January is traditionally a big month for retailers to announce store closings. The Wet Seal announced it would close 338 stores, or about 66% of its total portfolio, “on or about” Jan. 7, resulting in the termination of some 3,695 full- and part-time employees. Many analysts are also predicting other major chains will announce store closings this month.