JCPenney Company Inc today (1/24/11) revealed some cost-cutting measures to better manage costs and allocate resources more effectively. Shares of the company were up 6.8% at the announcement of plans to streamline its operations focusing on long-term growth.
1. close six under-performing department stores
2. wind down its catalog and outlet business, including the 19 outlet stores that carry a significant amount of catalog merchandise
3. consolidate its call centers
4. reorganize its custom decorating business into one facility in Statesville, North Carolina, closing 225 in-store studios
The shut-down will be carried out over the course of 2011 and 2012. The retailer operates over 1,100 department stores, and posted a 5.7% rise in same-store sales for December 2010.