Closures will represent less than 5 percent of the retailer’s total annual sales.
According to the company, the closures will help align its brick-and-mortar presence with its omni-channel network.
The total store closures will represent roughly 13 to 14 percent of the company’s current store portfolio, less than 5 percent of total annual sales, less than 2 percent of earnings before interest tax, depreciation and amortization, and 0 percent of net income.
The stores identified for closure would either require significant capital to achieve the company’s new brand standard or are minimally cash flow positive today relative to J.C. Penney’s overall consolidated average.
The impacted stores are expected to close in the second quarter of 2017.
"We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers,” says Marvin Ellison, chairman and chief executive officer, J.C. Penney. “Maintaining
J.C. Penney will release a full list of planned closures in mid-March, pending notification of all affected personnel.
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