J.C. Penney to Slow Store Openings, Cut Spending

J.C. Penney to Slow Store Openings, Cut Spending
June 26, 2008

After completing its strategic planning process for the coming year, Plano, Texas-based J. C. Penney Co. Inc. will further reduce new store openings and renovations from 2008 levels. The company will also continue to focus on controlling inventory levels and operating expenses, including a further reduction in capital expenditures for 2009. J.C. Penney's plans for 2009 now call for a reduction in capital expenditures to approximately $650 million, versus $1 billion expected for 2008, and $1.2 billion in 2007. The retailer plans to open 20 new or relocated stores in 2009, down from 36 new or relocated stores that will open in 2008. This compares to previous plans to open 50 stores each year through 2011. Among the stores that will open in late 2009 is the company's first store in Manhattan, which is expected to be its highest sales volume location. The company has also reduced its renovation plans to 10 to 15 stores in 2009, down from the 20 renovations it expects to complete in 2008, and compared to its previous plans to renovate 65 stores each year through 2011.