(MENAFN) Department store operator JC Penny Co Inc reported fall in sales for the holiday quarter more than expected, due to weak demand and competition from online retailers.
Accordingly, the company said it would shutter 130-140 underperforming stores during the next few months, to focus on more profitable ones.
However, Penny's results underscored the brick-and-mortar retail industry's struggles to overcome a drop in traffic in malls and a shift toward online shopping.
Chief Executive Marvin Ellison said: "(Q4) store gross margin was negatively impacted by actions we took with couponing and increased promotional activity... These were poor decisions that will not be repeated."
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