Will J.C. Penney Co. Inc. (NYSE: JCP) Close Down its Stores?

Over one hundred years ago, James Cash Penney founded a company and named it after himself. He was an active member of the company and very social as well. The company soon won the hearts of many American citizens. The company has a legacy of maintaining a socially responsible organization; it extends environmental, ethical and social standards across all of its operations. The company is dedicated to building upon its legacy of social responsibility, as it works to maintain a sustainable set of operations.

J.C. Penney Co. Inc. (NYSE: JCP) was one of the largest retailers in home furnishing and retailers. The company is dedicated to providing unparalleled styles to American citizens. It brings quality and value to its customers. Customers can find a very wide assortment of items from private, exclusive and national brands in all stores of J.C. Penney Co. Inc. (NYSE: JCP) and the e-commerce website, jcpenney.com. Customers can find items of all shapes and sizes that satisfy the budgets of all kinds of people.

J.C. Penney Co. Inc. (NYSE: JCP) had faced a very disastrous time during the reign of Ron Johnson, 2011 – 2013. The same-store sales and revenue fell during this time by 20%. Analysts were wondering if J.C. Penney Co. Inc. (NYSE: JCP) would survive these difficult times. However, the company struggled and achieved several quarters of recovery. But now, the company is declining again. Will the company become a powerful retailer again? If J.C. Penney Co. Inc. (NYSE: JCP)’s results in the fourth quarter of the current fiscal do not increase, they might need to shut down several stores.

The third quarter results of J.C. Penney Co. Inc. (NYSE: JCP) showed that the company will suffer in the holiday season. The net sales were reported $2.764 billion, fewer than last year’s earnings of $2.779 billion. Meanwhile, the same-store sales remained constant. The company also faced a loss of $188 million.

The outlook for the fourth quarter is not promising. J.C. Penney Co. Inc. (NYSE: JCP) is known for predicting such results that do not meet projections. The company has predicted that comparable store sales will increase by 2% or 4%, gross margins by 500 points and SG&A expenses will also be more than last year.

J.C. Penney Co. Inc. (NYSE: JCP) will not go out of business. Now the concern is that will the company continue to lose its market shares to the competitors? If the situation prevails, then the company will have to shut down its stores and become a small business so as to achieve modest profits. Otherwise, the company will only entertain losses.

Currently, J.C. Penney Co. Inc. (NYSE: JCP) operates 1060 store locations. Considering the results, many of the company’s stores will need to give up money and close down. J.C. Penney Co. Inc. (NYSE: JCP) is not in a position to support stores that have no chances of turning around to generate more profits. Ultimately, some stores will have to be permanently shut down.