Retail giant JC Penney announced today, it plans to close some 33 stores before May. Furthering the discussion of a prolonged recession, the clothing retailer plans to layoff some 2,200 employees. First founded in 1902 the Texas base company is closing the under performing stores in the hopes to revive it's slumping profit margin.
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After announcing the news, JC Penney's stock took a 2.5% loss. A trend that has unfortunately been unstoppable. The one time Americana Main Street staple has seen it's stock fall more than 60% in the last year.
Before the closings, JC Penney has some 1,100 stores in the US. Despite a brief turn around in the fall posting some of their best fiscal numbers in two years, JC Penney indicated that the they did not continue the trend through the holiday season. The department store chain hopes to generate in the neighborhood of $65 million from closing the 33 branches.
In effort to win back shoppers JC Penney plans to return some popular brands back to the shelves as well as featuring popular sales. The company also is continuing it's plans to open a new store in Brooklyn NY.
Not alone in this trend Macy's is said to cut some 2,500 employees and Sears is also reporting a disappointing holiday season.