Boston, MA 01/17/2013 (wallstreetpr) – J.C. Penney Company, Inc. (NYSE:JCP) is reacting to its dismal performance in the holiday season of December by cutting thousands of jobs and closing several stores in efforts to curb losses and restore profitability. But the century-store is not alone in the latest exercise aimed at streamlining operations in the retail sector; other retailers are also doing more or less the same.
Sears Holdings Corp (NASDAQ:SHLD) has announced plans to cut more than 1,600 jobs in its retail arm in Canada. The company will also outsource some of its works. This move follows a drop of more than 7.4 percent in group sales in the store. Yet another retailer adjusting its operations is Macy’s Inc (NYSE:M) which announced this month that it would trim 2,500 jobs from its current workforce and close about five stores.
Return to profitability
J.C. Penney Company, Inc. (NYSE:JCP) is pursuing profits at all cost. The company’s latest move to shutter 33 stores and cut 2,000 jobs is an exercise expected to restore profitability given that the company is currently bogged down by contracting sales and high expenses.
If the retailer pushes through with these developments, it hopes to save up to $65 million a year starting this year. The planned job-cuts and store closures are expected to be completed in May.
JCP’s turnaround has been slow and the company is yet to register a profit in over two years. The stock has tumbled since it issued a review of December performance that excluded specific figures for the month.
J.C. Penney Company, Inc. (NYSE:JCP)’s turnaround story is currently guided by CEO Mike Ullman who was brought back in April to lead the money-losing retailer. Mr. Ullman has helped the company secure about $3 billion for turnaround but there has been very little to show for the efforts being made to bring the company back on its feet, save for the marginal monthly sales gains in October and November.
The stock of J.C. Penney Company, Inc. (NYSE:JCP) was trading down nearly 2 percent on Thursday.