Bankrupt retailer JCPenney said Wednesday it will cut its workforce by about 1,000, axing largely corporate, field management, and international positions, and will close 152 stores as part of its downsizing as it adjusts to a changing consumer landscape.
The storied retailer filed for bankruptcy protection earlier this year, along with a raft of other stores including Neiman Marcus, as it fell victim in the short haul to coronavirus lockdowns but also suffered from changing consumer tastes, lackluster traffic in malls and debt.
Penney said in a news release it has identified 152 stores to close (down slightly from an early pronouncement of 154), following a “comprehensive evaluation of store performance and strategic fit for the company,” adding that the job cuts are part of an “organizational realignment.”
It’s been tough sledding for many brick and mortar retailers for some time, and those not nimble enough to ramp up online selling during this year’s coronavirus pandemic have suffered.
Meanwhile Amazon, king of the online merchants, continued to rake in cash as Covid-averse consumers have looked to avoid the physical shopping experience, even as some restrictions eased. Amazon said in a release its first quarter sales were $75.5 billion, up by 26% year-over-year from $59.7 billion.
