J.C. Penney committed to brick-and-mortar but will still close some stores

Look for J.C. Penney to close some stores as it moves forward.



In remarks at the The Weitzman Group’s annual forecast event, Penney CEO Marvin Ellison said the company’s 1,014-store portfolio is too large and that the retailer is analyzing which locations don’t meet its “brand standard,” the Dallas Business Journal reported.



Ellison emphasized that physical stores are vital to Penney’s revenue. And he noted the crucial role they play in helping to reduce fulfillment costs for online purchases.



“There is not a pure player e-commerce retailer of any scale that’s making money, and that includes the dominant companies like Amazon,” said Ellison, according to the report. “Fulfillment costs are growing at a higher rate than revenue.”



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