US housewares and fashion retailer JC Penney has slashed its store opening programme for next year in light of what it describes as “a period that we expect to remain very challenging for the American consumer”.
The company now intends to open or relocate 20 stores in 2009 as against its original plan of 36. The revised programme will reduce JC Penney’s capital expenditure for the year to $650m. This year it will spend $1bn, against $1.2bn in 2007.
The retailer has also cut its plans for store refurbishments, down to 10 to 15 from the original 20.
JC Penney says it is continuing to focus on “rigorously controlling inventory levels and operating expenses”.