US department store business JC Penney is closing stores and its catalogue business in an effort to boost profits.
The restructuring will see the closure of five under-performing department stores and a home store. The retailer will also complete the wind-down of its catalogue operation, which will include closing 19 outlet stores that carry a significant amount of catalogue merchandise. Some of the outlet stores could be converted to JC Penney department stores. Two call centres will also be axed.
Chairman and chief executive officer Myron E Ullman III said in a statement: “As we continue to position our company for the future, we are determined that these steps are necessary to capitalise on the growth opportunities we see ahead, while we ensure we are managing costs appropriately and continually enhancing the profitability of our operations.”
JC Penney operates over 1,100 department stores in the US and Puerto Rico.