J.C. Penney announced Thursday that the company will close about 40 stores over the next year. The closure will affect approximately 2,250 employees.
Penney’s stock was down about 2 percent in early trading Thursday. Most locations will close on or around April 4. The decision came after the retailer said its stock was down 2 percent, even though sales rose 3.7 percent during the holiday season. Analysts have been calling for some J.C. Penney stores to close because they have too many locations. They believe downsizing will increase profit all year round, not just during the holidays.