JC Penney follows Sears, will close at least 130 stores

JC Penney follows Sears, will close at least 130 stores

JC Penney follows Sears, will close at least 130 stores

J.C. Penney is closing 130 or 140 stores over the coming months as it attempts to revive sales and better compete against the onslaught of online retail.

J.C. Penney, which operates about 1,000 stores, plans to release a full list of planned closures in mid-March, with almost all of the stores expected to close in the second quarter of 2017.

Department store chain J.C. Penney Co. Inc.

The stores targeted for closure total less than 5 percent of total annual sales, the company reported.

The news came as Penney posted a profit in the fourth-quarter compared to a loss a year ago. The company forecast that same-store sales in the current year would rise by 1% in a best-case scenario.

Despite the improvements, the company says that it will continue to work on cutting costs and improving its online presence through the store closures. JCPenney will also close a distribution center in Lakeland, Fla., in early June, and is in the process of selling its supply chain facility in Buena Park, Calif.

"We believe the relevance of our brick-and-mortar portfolio will be driven by the implementation of these initiatives consistently to a larger percent of our stores", Ellison said.

The company also announced on Friday that is initiating a voluntary early retirement program for approximately 6,000 eligible employees.

Macy's, which still has a store in the Holyoke Mall at Ingleside, shut down the Eastfield Mall store past year, along with the store in the Berkshire Mall and furniture and department stores in the Enfield Square Mall in CT.

Eillison figures the winning combination will be a "frictionless interaction between stores and e-commerce, while leveraging physical locations to minimize the growing operational costs of delivery". The affected distribution facilities are in Florida and California, but no list of affected stores was provided.

After continuously disappointing performances previous year, other department stores, including

JC Penney plans to save around $200 million with the closures, although it could well take a pre-tax charge of $225 million as the stores close.