To vamp the struggling department store, J.C. Penney has decided to get out of the appliance business.
CNBC reports that appliances were brought back in 2016 after the retailer focused on goods, such as apparel. With Sears filing for bankruptcy and steadily market share, J.C. Penney's former CEO, Marvin Ellison, thought the there was an opportunity, but it didn't live up to expectations. Ellison was replaced by Jill Soltau late last year.
Starting Feb. 28, the chain will no longer sell major appliance in its stores to "better meet customer expectations, improve financial performance and drive profitable growth." In a blog post, the company also said that furniture will soon only be available online and in select stores in Puerto Rico.
With the excess space in stores, CNBC reports that it will focus on its "legacy" categories, such as apparel and certain home furnishings as it calls for "higher margin opportunities."
Even with Sears shutting down hundreds of stores, J.C. Penney is still struggling to turn itself around. The retailer has too much inventory to make way for new styles, weighing heavily on profit margins. Still, the department store has more than 800 locations across the U.S., which some analysts view as "too much" real estate, especially if e-commerce continues to grow at the pace it is.
J.C. Penney is expected to provide more details on its decision to move away from appliances when it reports its earnings at the end of the month. At that time, the retailer is also expected to discuss additional store closures, CNBC reports.
