JCPenney made a decision on Wednesday to discontinue selling major appliances at all of their stores by the end of the month.
Continue Reading Below
In a press release, the retailer, who has continued to battle declining sales and executive vacancies over the last couple of months, said the decision was made to “better meet customer expectations, improve financial performance and drive profitable growth.”
And, in addition to scrapping all major appliances, furniture will now only be available online and select Puerto Rico stores. The retailer notes that mattresses, however, will continue to be available.
“While configurations vary by store, we are finalizing new layout options, including the reduction of store space previously dedicated to appliance and furniture showrooms to maximize efficiencies, reduce inventory and create an enhanced shopping experience that inspires repeat shopping trips,” JCPenney said.
The embattled retailer added that optimizing store space will enable them to prioritize and focus on its strengths, which include apparel and “soft” home furnishings.
But for those customers who have—or plan—to buy a major appliance at one of its 450 locations, the company noted that all protection plans and manufacturer’s warranty agreements will continue to remain in effect “for the applicable warranty period.”
Last month, as reported in FOX Business, the 117 year-old retailer fired back at rumors that it was on the verge of bankruptcy similar to its rival Sears amid leadership changes and declining stock value.
A JCPenney spokesperson said it is "misleading to say that [it's] struggling to avoid bankruptcy and it's an irresponsible assumption that executive vacancies somehow translates to our inability to operate our business."
The company added that it expects to end the year with well over $2 billion in liquidity and noted that it exceeded market expectations on earnings per share in the third quarter.