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Wednesday, January 09, 2019

J.C.Penney new CEO lays out first round of Store Closures

J. C. Penney Co. said it will close three stores this spring and may announce more next month as new Chief Executive Officer Jill Soltau embarks on a broad evaluation of its footprint. The announcement briefly sent shares soaring in late trading.

J.C. Penney also reaffirmed its earlier guidance that it will generate free cash flow in fiscal 2018 and reduce its bloated inventory, an issue that has plagued the company in recent quarters.
Key Insights

This marks one of the first public moves by Soltau, who took the helm in October. The decision to close underperforming stores doesn’t come as a surprise, since she promised “quick action” in November for a company looking for a turnaround. She said she was taking a close look at the company’s fleet of about 860 stores.
Investors will be happy to see the new chief making decisive actions.

6 comments:

Anonymous said...

Some of us can recall when JC Penny's and Sears owned all of their stores & had not yet transitioned to malls.I'm not aware of a single Wal Mart that is in a mall.Why couldn't intelligent people observe a successful format and follow suit? Wal Mart did not have a patent on any facet of their operation,other than their name.Mall rent is unbearable.

Anonymous said...

Sounds very familiar.

Shed Guy said...

Anchors usually own their buildings at malls, or used to. Sears often owned the malls they were in, under corporate holding company Hobart properties. Also, many discount stores no longer around owned free standing stores, ie korvettes, murphys, etc. Real estate became more valuable than the business.

Shed Guy said...

Also, Walmart's format was pioneered by K Mart, just better managed.

Anonymous said...

Shopping is just not the pass time it use to be. Husbands don't make that much and wives work and don't have time for it anymore. Thank God.
Wal-Mart killed them all making half cent demands of suppliers and driving manufacturing off shore and all the crap ends up in the landfill.They should be mandated to recycle everything they sell at the end of it's life.

Anonymous said...

The economy is fine.
Everybody has a job.
Nobody is in debt up to their eyeballs.
The stock market is not a casino.
COMEX is not rigged.
Neither was LIBOR
The Fed is not a secret group of private for-profit bankers who print currency out of thin air and rig COMEX to prevent gold's price from inflating to the moon because they have counterfeited the US Dollar.