VodkaPundit

JCP to Shed 2,000 Employees and 33 Stores

This should surprise no one:

J.C. Penney Co. JCP -0.43% said on Wednesday after the close of the market that it plans to shut 33 underperforming stores and cut 2,000 jobs as part of its turnaround efforts. The struggling retailer, which has about 1,100 stores, said it wants to focus its resources on the highest growth opportunities. The moves will result in annual cost savings of about $65 million, beginning this year. Penney expects to incur pre-tax charges of about $26 million in the fiscal fourth quarter of 2013 and about $17 million in future periods. “As we continue to progress toward long-term profitable growth, it is necessary to reexamine the financial performance of our store portfolio and adjust our national footprint accordingly,” said Chief Executive Mike Ullman. The company also is restoring commission pay for employees working in window coverings, furniture and fine jewelry departments.

The company alienated so many of its core customers so completely that they’re going to have a very hard time turning things back around. And all that of course is on top of a brick & mortar shopping concept which has lost much of it relevance.