Market Overview

Alert: JC Penney To Close Stores This Year, Sozzi Says

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  • J C Penney Company Inc (NYSE: JCP) has decided to shrink its operations this year.
  • According to Brian Sozzi of The Street, the department stores operator plans to close seven of its roughly 1,060 U.S. stores over 2016.

People from the company’s management team were at the ICR Conference on Tuesday, and said that the stores picked for closure will be smaller-sized ones, mostly located in older, less-crowded malls. The company owns only two of these stores, while the other five are leased, Sozzi added.

A company spokesman, Trent Kruse, told The Street that there would probably "be a net closure of stores the next few years."

Related Link: Expert: Macy's An Amazing Brand, But Only Solution Is To Close Stores

Macy's, Inc. (NYSE: M) also announced recently that it would be closing 35 stores by early spring 2016. Why did it move faster than J C Penney?

"Macy's had a head start in understanding the impact of how digital shopping influences its bricks and mortar stores, we are really now just better understanding the influence," Kruse said.

Shares of JC Penney were trading down roughly 1.5 percent on Tuesday, while shares of Macy's lost almost 2 percent during the day.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

Latest Ratings for JCP

DateFirmActionFromTo
Mar 2019MaintainsNeutralNeutral
Dec 2018Initiates Coverage OnUnderweight
Nov 2018DowngradesHoldSell

View More Analyst Ratings for JCP
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Posted-In: Brian Sozzi The StreetAnalyst Color News Analyst Ratings Media

 

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