J.C. Penney will be shuttering one of its distribution centers in Wauwatosa, Wisconsin, eliminating 670 jobs, a spokesman confirmed with CNBC.
The Milwaukee Business Journal first reported on the news Tuesday morning.
This kind of summer, the company will begin winding down operations there, as part of the retailer’s ongoing effort “to align our supply chain network along with also customer care operations with the future needs” of Penney, the spokesman said.
As the idea stands today, Penney’s supply chain network will be “oversized” from the area when compared with the department store chain’s overall footprint, he explained. Operations coming from the Wauwatosa location will be moved to different facilities in Lenexa, Kansas, along with also Columbus, Ohio.
“the idea’s never easy taking actions which directly impact our valued associates, however, we feel This kind of will be a necessary business decision,” the spokesman added. Penney will give eligible associates separation benefits, including outplacement support along with also career training classes.
A slew of retailers, including Penney, have announced rounds of store closures — totaling hundreds of locations along with also costing thousands of jobs — already This kind of year. The closing of a distribution center, though, has been a rare occurrence, as many businesses are still figuring out ways to grow their supply chains along with also fulfill “last-mile” orders.
U.S. department stores including Macy’s along with also Sears Holdings are finding they no longer require such large-format stores. Most of them are whittling back their square footage.