J.C. Penney closing some stores

[dmx10101]

PLANO, Texas - J.C. Penney Co. is closing some stores, outlets and call center locations and continuing to work on an exit from its catalog business in an effort to streamline operations and boost profits.

The department store operator also said Monday that Vornado Realty Trust Chairman Steven Roth and activist investor William Ackman will become board members. Penney's enacted a "poison pill" in October after both Ackman and Vornado took large stakes in the company.

Ackman and his hedge fund Pershing Square Management have pushed for major changes at retailers he holds stakes in, such as Borders Group Inc. and Target Corp.

In an interview on CNBC, Ackman said J.C. Penney is a great company and a great brand, but could be a better retailer. He noted that the company has had success with its Sephora boutiques, but that sales per square foot over the past 10 years have not made progress and margins are off.

Penney reported in November that its gross profit margin slipped to 39 percent from 40.6 percent in the third quarter due to heavy discounting and the discontinuation of its big catalog.

Penney plans to close six underperforming stores and two call center locations. It is also reorganizing its custom decorating business, which includes closing a custom decorating fabrication plant in Sacramento, Calif., and shifting to managing 300 decorating studios instead of 525 of its current in-store studios.

The retailer's exit of its legacy catalog business includes shuttering 19 outlet stores that carry a large amount of catalog merchandise. Penney announced in November 2009 that it would stop publishing its twice-yearly "big book" catalogs. The company will also close one furniture outlet store in Rancho Cucamonga, Calif.; it will have two remaining such stores.

The company did not disclose how many job cuts would be involved in the actions, which will take place during the course of the year.

J.C. Penney currently runs more than 1,100 department stores in the U.S. and Puerto Rico.

"As we continue to position our company for the future, we determined that these steps are necessary to capitalize on the growth opportunities we see ahead while we ensure we are managing costs appropriately and continually enhancing the profitability of our operations," Chairman and CEO Myron E. Ullman III said in a statement.

The retailer, based in Plano, Texas, expects the moves to add about 7 cents per share to 2012 earnings. It will take charges of about 8 cents a share in the fourth quarter and 5 cents per share in 2011 related to the actions.

Penney, which will report its fourth-quarter results on Feb, 25, has recently found some success with exclusive brands. The company is the only U.S. retailer to sell Liz Claiborne and Claiborne women's wear, except the Isaac Mizrahi-designed Liz Claiborne New York brand, which went to QVC. It is also the only department store selling MNG by Mango, a European clothing brand, a big coup as fast-fashion players have been a big threat to department stores.

Earlier this month J.C. Penney reported revenue at stores open at least a year rose 3.7 percent in December, part of the crucial holiday selling period. The figure beat analysts' expectations; the measure is a key indicator of a retailer's health because it gauges results at existing stores instead of newly opened ones.

Ackman and Roth are expected to be a part of J.C. Penney's board by its board meeting on Feb. 22, increasing the board's size to 13 members from 11 members. Another director is expected to be added in the near future, the company said.

When Ackman disclosed the stake in October, he said Penney's stock was undervalued and he planned to discuss "business, assets, capitalization, financial condition, operations, governance, management, strategy and future plans."

In Penney's statement Monday, Ullman said, "We welcome Bill and Steve to the board. They share our passion for operational excellence and are committed to enhancing value for all of the company's shareholders."

J.C. Penney shares closed Friday at $30.34.

[EddieJ1984]

So I guess this means the JC Penney outlet in Franklin Mills Mall in Philadelphia will eventually be closing.
Sucks cause that mall will now have 3 abandoned anchor stores (JC Penney Outlet, other was a Boscov's Outlet then Steve & Barry's, and the other one was a Pharmor, and has been empty since it closed)

[tomasher]

Good point, Eddie.  I wonder what another major vacancy at Franklin Mills will mean for the future of the mall.  The abandoned Chi Chi's fire tonight doesn't help either.

[jmann]

The store in the Eastfield Mall in Springfield Mass. is closing the end of August.

[retailisking]

The Eastfield Mall closure is a victim of JCP's decision to close all 19 remaining outlet stores
http://www.masslive.com/news/index.ssf/2011/01/jc_penney_will_close_its_sprin.html

[andy4tankar]

PLANO, Texas - J.C. Penney Co. is closing some stores, outlets and call center locations and continuing to work on an exit from its catalog business in an effort to streamline operations and boost profits.

The department store operator also said Monday that Vornado Realty Trust Chairman Steven Roth and activist investor William Ackman will become board members. Penney's enacted a "poison pill" in October after both Ackman and Vornado took large stakes in the company.

Ackman and his hedge fund Pershing Square Management have pushed for major changes at retailers he holds stakes in, such as Borders Group Inc. and Target Corp.

In an interview on CNBC, Ackman said J.C. Penney is a great company and a great brand, but could be a better retailer. He noted that the company has had success with its Sephora boutiques, but that sales per square foot over the past 10 years have not made progress and margins are off.

Penney reported in November that its gross profit margin slipped to 39 percent from 40.6 percent in the third quarter due to heavy discounting and the discontinuation of its big catalog.

Penney plans to close six underperforming stores and two call center locations. It is also reorganizing its custom decorating business, which includes closing a custom decorating fabrication plant in Sacramento, Calif., and shifting to managing 300 decorating studios instead of 525 of its current in-store studios.

The retailer's exit of its legacy catalog business includes shuttering 19 outlet stores that carry a large amount of catalog merchandise. Penney announced in November 2009 that it would stop publishing its twice-yearly "big book" catalogs. The company will also close one furniture outlet store in Rancho Cucamonga, Calif.; it will have two remaining such stores.

The company did not disclose how many job cuts would be involved in the actions, which will take place during the course of the year.

J.C. Penney currently runs more than 1,100 department stores in the U.S. and Puerto Rico.

"As we continue to position our company for the future, we determined that these steps are necessary to capitalize on the growth opportunities we see ahead while we ensure we are managing costs appropriately and continually enhancing the profitability of our operations," Chairman and CEO Myron E. Ullman III said in a statement.

The retailer, based in Plano, Texas, expects the moves to add about 7 cents per share to 2012 earnings. It will take charges of about 8 cents a share in the fourth quarter and 5 cents per share in 2011 related to the actions.

Penney, which will report its fourth-quarter results on Feb, 25, has recently found some success with exclusive brands. The company is the only U.S. retailer to sell Liz Claiborne and Claiborne women's wear, except the Isaac Mizrahi-designed Liz Claiborne New York brand, which went to QVC. It is also the only department store selling MNG by Mango, a European clothing brand, a big coup as fast-fashion players have been a big threat to department stores.

Earlier this month J.C. Penney reported revenue at stores open at least a year rose 3.7 percent in December, part of the crucial holiday selling period. The figure beat analysts' expectations; the measure is a key indicator of a retailer's health because it gauges results at existing stores instead of newly opened ones.

Ackman and Roth are expected to be a part of J.C. Penney's board by its board meeting on Feb. 22, increasing the board's size to 13 members from 11 members. Another director is expected to be added in the near future, the company said.

When Ackman disclosed the stake in October, he said Penney's stock was undervalued and he planned to discuss "business, assets, capitalization, financial condition, operations, governance, management, strategy and future plans."

In Penney's statement Monday, Ullman said, "We welcome Bill and Steve to the board. They share our passion for operational excellence and are committed to enhancing value for all of the company's shareholders."

J.C. Penney shares closed Friday at $30.34.

Its very helpful for the people like me.
They share our passion for operational excellence and are committed to enhancing value for all of the company's shareholders.
Its great to heard.

I will be watching for next movement from them.

[EddieJ1984]

Per the Northeast Times this week.
The JCPenney Outlet in Franklin Mills Mall will become a regular JCPenney store.

[store215]

Per the Northeast Times this week.
The JCPenney Outlet in Franklin Mills Mall will become a regular JCPenney store.

That's interesting....as I consider Franklin Mills leaning towards "dead mall". Although there are still plenty of brand-name stores, there are many vacancies. I haven't been to Franklin Mills in about 3 years or so, but I can't imagine many new things have opened. The last time I was there, there was a definite amount of people, but not overly busy. There was a Rainforest Cafe' in there, but that space was still empty when I visited, and that closed years and years ago. The former Ports/Boscov's/Steve & Barrys is still empty, as well as a portion? of a former Phar-Mar store judging by the mall map. I know some of the restaurants around the mall have closed as well, and the strip centers around the mall were mostly vacant.. I do remember the JCPenney being very busy though (and this is their only location in Philadelphia I believe). All the other remaining anchors are discount and big-box type stores.

[Zayre88]

J.C.Penney - Ugly Result leave more Doubt for 2013
RETAIL | 11/09/2012 @ 3:57PM

Today J.C.Penney reported 3Q12 results and held its quarterly update meeting with the investment community. The financial results were nothing short of horrendous and way below my expectations. Sales fell by a stunning $1.1 billion to $2.9 billion from $4.0 billion in 3Q11, a decline of 26.6% on a drop of 26.1% in same store sales. Excluding non-operating items, the company saw a net loss of $203 million versus net earnings of $38 million last year of ($0.93) vs $0.18.

http://www.forbes.com/sites/walterloeb/2012/11/09/j-c-penney-ugly-result-leave-more-doubt-for-2013/

[EddieJ1984]

The JCPenney in franklin mills never seems crowded when I go in it (well i do usually go on weekdays if im there, but still), and this is the one that was a jcpenney outlet and was redone as a new regular jcpenney. At least its clean looking now.
But yea I guess jcpenneys yet again makeover with this fair and square crap isn't working.

[IGA/Kmart Is Forever!]

Does anybody know if this is going to result in the closing of any stores? I certainly hope that my location around where I live does not shut down. While there are many other locations that I can shop at, I would have to drive further in order to get to them. Not only that, but the store that is around where I live is my favorite. Having said that, I would much rather shop at my favorite location that is in my area versus having to go to a location that is further away that is not my favorite.

Last, but not least I believe that a loyalty program like the one that is stated in the link in the post above is a great idea. I would certainly sign up for it.

[IGA/Kmart Is Forever!]

One other thing that I believe would help JCPenney is if they got rid of their, "Everyday Low Prices" Program and go back to having ads weekly as well as special sales where customers can get exclusive savings combined with coupons from their ads. JCPenney has always been a low price retailer. What is the use of offering, "Everyday Low Prices" when their prices were originally low to begin with? The stores that I believe are expensive to shop at are Dillard's & Macy's. Prices are so high at Dillard's that the only way that I will purchase clothes from their stores is when they are going on clearance at the end of a season. When it comes to Macy's not only are their prices high, but they completely got rid of the product selections that I used to buy from them back when they were still Kaufmann's in my area. Macy's pretty much lost my business when they completely got rid of the product selection that I liked while at the same time had high prices when they took over Kaufmann's. Now that Kaufmann's is no longer around I pretty much do all of my department store shopping at JCPenney. I have always shopped at JCPenney, but with Kaufmann's no longer around JCPenney pretty much gets 100% of my department store business now instead of the 50% that I used to give them back when Kaufmann's was still around, which in the long run helps JCPenney out more when I shop there.

[TRU7536]

I walked into JcPenny's recently and just like Sears their stores seem so outdated. Their selections look terrible. I don't see how they can survive along with Sears. I hope the one at WestFarms closes, bc it doesn't suit well with what that mall has become. It has become to upscale to have a Penny's and hopefully it will close down to make room for a Bloomingdales.

WestFarms is my favorite mall and next year, they are expecting even more higher end stores to move in.