Boston, MA 01/06/2013 (wallstreetpr) – J.C. Penney Company, Inc. (NYSE:JCP) enjoys a lot of coverage. Sometimes it is portrayed to be in a deathbed and sometimes to be recovering from years of troubled operations. Here we look at this company, in the light of the latest announcement about its future operations in Gautier.
First, the company is reported to have placed a phone call to the mayor of Gautier city last Friday, announcing its plans to shut operations in Singing River Mall. If this announcement is met, J.C. Penney Company, Inc. (NYSE:JCP) will abandon Singing River Mall effective March 21.
On the face of it, J.C. Penney Company, Inc. (NYSE:JCP) seems to be opting to withdraw from the mall rather than buy the developers out. However, internally there must be something more than it meets the eye. It is a well-known fact that at present, J.C. Penney Company, Inc. (NYSE:JCP) is not in its best form. The company is trying hard to win back shoppers to its stores and more importantly, plug the runaway losses.
Store closure
Over the past years, it has closed several stores as part of restructuring efforts to reduce losses. Investors may be interested to know whether last week’s store closure announcement reveals continued efforts to plug losses or it says that the company’s troubles are far from over?
Between October and November last year, J.C. Penney Company, Inc. (NYSE:JCP) announced the rare success in its comparable stores. This announcement brought some energy to the stock as investors bought in favor of that sales growth and optimism. It thus means that if the company is closing a store, it appears to be more of a retooling effort than trouble.
Essentially, since change of management happened at the company in April last year, stores closures have been done and all have been announced to be in line with the transformation efforts being made.
Keep an eye
Investors should continue keeping an eye on this stock, while being rest assured that there is not too much to be read in the closure of Singing River Mall store. The reason to keep an eye on this stock is that, it is important to know whether the Christmas festive season resulted in better sales and if so, what opportunities does the company have in 2014.
