STREAMING NOW: Watch Now

JCPenney is ditching appliances and most furniture from its stores

JCPenney is trying to reinvent itself again. It's getting rid of appliances and most furniture to return its focus to clothing sales.The company hasn'...

Posted: Feb 6, 2019 2:51 PM

JCPenney is trying to reinvent itself again. It's getting rid of appliances and most furniture to return its focus to clothing sales.

The company hasn't turned a profit since 2010, and it forecast several more years of losses. New CEO Jill Soltau pledged "quick action" to put JCPenney on the path to profitability.

Going back to basics makes sense: Appliances were a pet project of former CEO Marvin Ellison, who had previously run Home Depot and left last year to take the helm at Lowe's. Appliances are a low-margin business that requires high sales volume to make up for thin profits. But appliances were not a good fit for a company that never had an identity as a home equipment company.

JCPenney said it would stop selling major appliances on February 28 "to better meet customer expectations, improve financial performance and drive profitable growth." It will continue to sell furniture online and in Puerto Rico stores -- but not anywhere else.

The company also announced Wednesday it will redesign its stores. It said it will reduce its massive inventory, which has held JCPenney back from offering new fashion trends -- and saddled the company with debt.

"Optimizing the allocation of store space will enable us to prioritize and focus on the company's legacy strengths in apparel and soft home furnishings, which represent higher margin opportunities," the company said in a statement.

Ellison brought JCPenney into the appliances business, because he believed the company could take advantage of Sears' collapse. But customers shrugged: Washers, dryers, dishwashers, and fridges are not major traffic drivers because shoppers only buy them once in a while, and they're expensive to make. Ellison abruptly left the company in May.

JCPenney's stock fell 2% Wednesday. It has recovered this year after falling below $1 for the first time in the company's 90-year existence in December.

The company is $4 billion in debt with a junk credit rating and a sinking cash hoard. Soltau said the company is considering closing some of JCPenney's remaining 860 stores to cut costs.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 42281

Reported Deaths: 1540
CountyConfirmedDeaths
Hennepin13568791
Ramsey5256233
Dakota271396
Stearns252319
Anoka2422111
Nobles16886
Washington128341
Olmsted127620
Mower9832
Rice8848
Scott8814
Clay61338
Kandiyohi5931
Blue Earth5752
Wright5395
Carver4942
Todd4032
Sherburne3695
Lyon3442
Freeborn3130
Watonwan2710
Steele2471
Benton2393
St. Louis23516
Nicollet20612
Martin1755
Winona14415
Goodhue1428
Cottonwood1410
Le Sueur1321
Otter Tail1141
Crow Wing11312
Pine1130
Chisago1101
McLeod1030
Dodge970
Carlton940
Polk903
Unassigned8838
Isanti830
Murray820
Chippewa811
Waseca780
Pipestone744
Douglas730
Itasca7112
Becker660
Morrison661
Meeker641
Faribault620
Sibley582
Jackson570
Pennington540
Beltrami530
Brown462
Mille Lacs402
Wabasha390
Renville372
Fillmore360
Rock340
Swift331
Grant320
Houston320
Yellow Medicine310
Roseau280
Redwood250
Wilkin223
Koochiching211
Norman210
Cass192
Lincoln190
Big Stone170
Kanabec171
Wadena170
Aitkin160
Marshall160
Clearwater130
Mahnomen131
Pope130
Stevens110
Hubbard100
Lake90
Traverse60
Lac qui Parle50
Red Lake40
Kittson20
Cook10
Lake of the Woods00

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 35313

Reported Deaths: 751
CountyConfirmedDeaths
Polk7538185
Woodbury334644
Black Hawk251959
Buena Vista173811
Johnson14798
Dallas140931
Linn139983
Marshall110019
Scott108410
Dubuque97823
Story8726
Pottawattamie83513
Wapello71531
Muscatine69345
Crawford6813
Sioux5050
Tama48729
Webster4285
Wright3991
Louisa36713
Jasper35417
Plymouth3525
Warren3331
Cerro Gordo3171
Dickinson3063
Washington2569
Hamilton2021
Boone1721
Clay1501
Clarke1443
Allamakee1384
Clinton1381
Mahaska11917
Shelby1190
Carroll1171
Bremer1167
Poweshiek1138
Franklin1120
Pocahontas1091
Des Moines1022
Emmet970
Cedar961
Henry933
Hardin920
Cherokee851
Marion850
Floyd822
Taylor810
Guthrie784
Monona780
Benton751
Jones721
Butler702
Osceola690
Sac680
Buchanan651
Calhoun652
Iowa631
Jefferson630
Harrison620
Hancock611
Jackson610
Humboldt601
Lyon600
Fayette590
Delaware561
Madison552
Lee542
Mills530
Palo Alto530
Monroe527
Clayton503
Winneshiek500
Grundy470
Mitchell460
Winnebago440
Davis431
Union430
Kossuth420
Howard370
Lucas354
Unassigned350
Chickasaw310
Greene310
Cass300
Worth250
Ida230
Keokuk231
Appanoose223
Page220
Van Buren210
Audubon181
Adair170
Ringgold161
Montgomery152
Decatur130
Fremont110
Wayne110
Adams80
Rochester
Few Clouds
81° wxIcon
Hi: 82° Lo: 68°
Feels Like: 83°
Mason City
Few Clouds
83° wxIcon
Hi: 84° Lo: 69°
Feels Like: 85°
Albert Lea
Scattered Clouds
82° wxIcon
Hi: 83° Lo: 69°
Feels Like: 85°
Austin
Scattered Clouds
82° wxIcon
Hi: 84° Lo: 70°
Feels Like: 85°
Charles City
Few Clouds
83° wxIcon
Hi: 84° Lo: 68°
Feels Like: 85°
Monday finishes strong with storms on the way for Tuesday
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Testing Site in Olmsted County

Image

Dave Noon Wx 7-13

Image

Mental health resources

Image

Dave Main Wx 6:30a 7/13

Image

Extended tax deadline is just two days away

Image

Zollman Zoo adapting to social distancing guidelines

Image

25th Anniversary Jodi

Image

New MC Test Site

Image

Operation Dry Water

Image

CL Splash Pad Opening

Community Events