J. C. Penney Slows Store Growth

PLANO, TX-J. C. Penney Co. is cutting back store openings this year to 36 from the 50 executives had previously forecast, due to the slowdown in the US economy. Earnings and sales dropped during the fourth quarter as compared to the same period last year as a result of a “challenging retail environment,” said Myron Ullman, the company’s chairman and chief executive officer.

“We’re no less committed to our goal of expanding our business,” he said, despite the scaling back of openings. Executives have $1 billion earmarked for capital expenditure costs on new stores and renovations.

Same-store sales during the quarter, which ended Feb. 2, dropped 2.3% year over year, while total sales fell 4.1%, to just under $6.4 billion. Earnings per share fell from $2.09 to $1.93.