Investment WatchblogJ.C. Penney Co. said on Wednesday it would close 33 stores and cut 2,000 jobs as part of its efforts to return to profitability.
Chief Executive Myron Ullman said in a statement the action “addresses a strategic priority to improve the profitability of our stores.”
Penney is the second major U.S. retailer in as many weeks to announce layoffs. Last week, Macy’s Inc. said it was eliminating 2,500 jobs. Those cuts will be offset over time as the retailer plans to add positions to its online business, leaving overall staffing levels unchanged at around 175,000.
http://www.moneynews.com/Companies/JC-Penney-Stores-Cut-Jobs/2014/01/15/id/547321
The Blistering Recovery Continues: Week After Macy’s, JCPenney Fires 2000, Closes 33 Stores
http://www.zerohedge.com/print/483775
JC Penney has yet to announce holiday sales:
http://finance.yahoo.com/news/jc-penney-maintains-fourth-quarter-135304740.html
Perhaps they made so much money its taking them longer to count it….
Best Buy Plummets 30%, Is Better Sell Following Abysmal Holiday Sales Update
Despite several apparently well respected sell-side shops proclaiming that all would be well, the electronics warehouse missed comps (Sales at stores open at least 14 months were down 0.9 percent in the US (compared to expectations of +2.0%)and is being punished. Revenues fell 2.6% for the comparable period also. Shares are down 30% in the pre-market to 7-month lows as the company claims an “intensely promotional holiday season.” It seems, perhaps, that following several other retailers’ earnings updates the holiday season was even worse than many had expected (especially in the bricks-and-mortar stores that actually employ real people).
From the conference call:
- *BEST BUY SURPRISED BY CONSUMER ELECTRONICS MARKET DECLINE DEC.
- *BEST BUY: PRICE CUTTING WILL CONTINUE IN JANUARY
- *BEST BUY: HIGHEST DISCOUNTS IN TV, MOBILE AND COMPUTERS
A quiet collapse which requires attention
Best Buy made the news this morning with a drop in sales it referred to as a “speed bump,” but the truth is that it may simply be indicative of a much larger, more ominous move in the retail sector as a whole. But first, let’s take a look at the environment in which the space currently resides.
The US Consumer Is So Strong, Macy’s Just Fired 2500 And Announced The Closure Of Five Stores
Just out from Macy’s, which first said the following: “The 2013 holiday season was successful for Macy’s and Bloomingdale’s as we offered fresh and distinctive merchandise, delivered great value to the customer and provided a robust omnichannel shopping experience… Even in a questionable macroeconomic environment with challenging weather in multiple states, the positive response from our customers during the holiday season is yet another vote of confidence that our well-established strategies continue to work for us.” What well-established strategies one may ask? Why the following of course, which was also just disclosed in a separate news release “outlining cost reduction initiatives to support continued profitable sales growth”: “Approximately 2,500 employees are expected to be laid off and are eligible for severance as a result of these organizational changes. Other associates are being reassigned with new duties or transferred; some open positions will not be filled.”
700-1,000 Losing Jobs: Albertsons to close 11 stores, 1 in Long Beach.
700-1,000 Losing Jobs: Albertsons to close 11 stores, 1 in Long Beach.
http://www.ocregister.com/articles/al…
Do fundamentals matter anymore?
As the stock market continues to shake off poor employment and earnings reports, one can only wonder if fundamentals matter anymore.
Last Friday’s release of the December nonfarm payrolls report by the Bureau of Labor Statistics failed to have a significant impact on the stock market, despite the disappointing news contained in the report. Although economists had been expecting to see that 200,000 non-farm payroll jobs were added during December, the report indicated that only 74,000 jobs were added. The unemployment rate declined from 7.0% to 6.7%. On the other hand, the labor-force participation rate fell to its lowest level since 1978, declining to 62.8% from November’s 63%.
The stock market demonstrated almost no reaction to the non-farm payrolls report. The Dow Jones Industrial Average lost only 7 points to finish Friday’s trading session at 16,437 for a 0.05% dip. The S&P 500 rose0.23% to finish at 1,842.
http://www.marketwatch.com/story/do-fundamentals-matter-anymore-2014-01-16?link=MW_home_latest_news
Read more at http://investmentwatchblog.com/tough-times-are-just-around-the-corner-jc-penney-macys-albertsons-to-close-stores-and-cut-thousands-of-jobs-best-buy-plummets-30-after-abysmal-holiday-sales-update/#DbcM0u8VllUyf8HY.99
“addresses a strategic priority to improve the profitability of our stores.” That’s pretty much all you have to say.
Stay Alert, Stay Alive
Those are sad words and you’re spot on. All it took was a “speed bump” in their cash flow highway and they destroyed yet a few thousand more peoples lives:/ They will never have enough,no matter how much. I swear the human suffering that comes with their gains after they “execute their strategies” makes them smile more before they sleep at night. Execute is a good word that can bite them in the a$$!
“addresses a strategic priority to improve the profitability of our stores.”
Yep, who cares about the people, just as long as we make money. These bastards have no morals.
“The 2013 holiday season was successful for Macy’s and Bloomingdale’s as we offered fresh and distinctive merchandise, delivered great value to the customer and provided a robust omnichannel shopping experience…”
Wow if art is defined as the ability to Bullshit, then they just made a masterpiece.
Yes folks, businesses are booming so much that they don’t need you anymore. Makes perfect sense in Bizzaroworld!
In other words, I’ve sold so many cars and business is up so much, that I don’t need your help selling the remaining 990 out of 1,000 cars that I have on the lot that must be sold by the end of the month in order for me to stay in business.
Make sense?
Yea, I didn’t think so.
Yeah NC,
If you can’t dazzle them with brilliance, baffle them with bullshit. 🙁
welcome too the united snakes ..or bizzaroo land..either will do..and like mr George carlin stated ..one thing we are good at.pure refined bullshit..and if you don’t like it we will bomb you..the unitied snakes..a circus run by morons..