JCPenney will be shuttering one of its distribution centers in Wauwatosa, Wisconsin. The action will result to 670 jobs being eliminated, as was confirmed by a company spokesperson.
The retailer will begin the shut down this summer. The facility currently serves as a warehouse and customer service operation for the retailer.
The centers in Wisconsin are closing as “part of an effort to align our supply chain network and customer care operations with the future needs of the Company,” said company spokesperson Carter English.
Also according to English, JCPenney’s supply chain is “oversized relative to its national store footprint.”
“It’s never easy taking actions that directly impact our valued associates,” English said in an emailed statement. “However, we feel this is a necessary business decision.”
“Eligible associates will receive separation benefits, including outplacement support and an on-site career training class,” he added.
The retailer hopes to fix the size problem by transferring operations to facilities in Lenexa, Kansas and Columbus, Ohio.
There have been numerous retailers, including JCPenney, which have announced rounds of store closures. This resulted to hundreds of locations being closed and costing thousands of jobs lost already this year.
Other retailers include U.S. department stores Macy’s and Sears Holdings. Most of these stores have decided to lessen their square footage.
JCPenney’s distribution center will close in July 1 while the customer care portion will close on September 1.
Sears’ Hidden Gem
Sears is one of the retailers looking to whittle down their square footage. But as it does, it might have found a hidden gem among its stores. A report was made in detail of the company’s supposed secret nugget.
Sears Home Services started in the 1950s and up to this day has proven itself to be a valuable pice of Sears Holdings. The company also offers maids and handymen, aiming to be known as the country’s “smart home expert”.
The trend hasn’t changed much since decades ago, consumers still need washing machines repaired and carpets cleaned. Specialists are still sought after when installing new gadgets to their homes.
“We want to be a trusted advisor of smart devices in the home,” said Sears Home Services CEO Mitch Bowling.
“In the smart home space there is not one provider that has everything — it’s usually a collection of items from different providers (i.e., August Home, Ring and Google) and we want to be a trusted advisor of all that space,” he said. “That goes back to training technicians and getting everyone up to speed … that’s the vision for us.”
Sears is also reported to be looking for ways to grow as its debts swell and sales decline. The company is now pouring resources into its home platform. Staffs have been reportedly taken in while the company potentially readies the division for acquisition.
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