In the wake of a disappointing holiday season, J.C. Penney said Friday it will close 130 to 140 stores by the second quarter. The store closures represent 13% to 14% of the company's current store base and less than 5% of annual sales. They have a negligible impact on net income. J.C. Penney said same-store sales at the locations were "significantly below" the remaining store base and operate at a much higher expense rate due to poor productivity. Sears Holdings Corp ( (SHLD ) Macy's ( (M - Get Report) ), Footlocker ( (FL - Get Report) ) are other retailers facing similar issues.
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