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Daily Mail
16 hours ago
- Business
- Daily Mail
JCPenney announces HUNDREDS of staffers will lose jobs in latest closing
Nearly 300 workers will be losing their jobs now that JCPenney is preparing to shutter Alliance Supply Chain facility in Texas. The struggling department chain will be closing the warehouse and begin its first round of layoffs on August 1, lasting until August 14. It will start the second round on November 1, which is scheduled to end on November 14. The warehouse will close for good in the same month. 'JCPenney is always seeking ways to adapt and enhance our operations with the goal of providing a better experience for our customers,' the company told 'After a thorough review of our organization, we've made the difficult decision to close our JCPenney Alliance Regional Logistics Center.' The chain has informed all affected employees of the decision and has offered them severance, benefits, and transition resources. The latest layoffs come a month after JCPenney shuttered seven stores in California, Colorado, Idaho, Kansas, New Hampshire. North Carolina, and West Virginia. Even though about 650 stores are still running, the brand has found it hard to bounce back from its 2020 bankruptcy filing. The chain's profit losses became noticeable in 2011, and worsened during the COVID-19 pandemic. JCPenney was forced to file for bankruptcy protection with $5 billion in debt and began closing 30 percent of its stores as part of a restructuring plan. Despite its bankruptcy exit in December 2020, the chain shuttered around 192 stores in 2021, and closed another 50 a year later. The previous closures, along with its upcoming warehouse shutdown, is meant to 'build a stronger, more competitive company,' according to JCPenney. Not including credit card sales, JCPenney finished 2024 with $6.3 billion in sales, an 8.6 percent decline compared to the year prior. It also suffered a $177 million loss in net sales, which came 'despite some reasonable cost control on general expenses.' JCPenney is fighting through its financial struggles, even launching exclusive lines created in collaboration with Ally Brooke, Dwayne Wade, and Gabrielle Union. While its collaborations may have helped with sales, the company's revenue fell over 9 percent to $2.09 billion during its fourth quarter, ultimately resulting in a $64 million net loss. JCPenney is one of many retailers that has left shoppers concerned over its future. Macy's is in the process of shuttering 66 locations this year after announcing its plan to close 150 stores by 2026. Once the planned closures are complete, the luxury retailer will only be operating 350 stores. Torrid, a once-popular mall staple, is set to close up to 180 stores following its sharp drop in sales. Other closures that left shoppers stunned include Saks' Union Square store and Neiman Marcus' downtown Dallas location. The struggles were too severe for chains such as Forever21 and Hudson's Bay to handle, resulting in total store closure.
Yahoo
17-06-2025
- Business
- Yahoo
Nuuly is dominating the apparel rental market
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Apparel rental company Nuuly has 'quickly become an industry leader,' with over twice the active subscribers as the next-largest apparel subscription business in the U.S., Rent the Runway, according to a Walls Fargo note lead by Ike Boruchow. The Urban Outfitters-owned company has captured subscribers that either previously used apparel rental or have never rented before. Most of its under 30 customers this year were new to rental. Nuuly also maintains one of the highest retention rates in the industry, with a 90% retention rate in year one and around a 40% retention rate in years three to five, per the report. One of Nuuly's most important competitive advantages is its ability to obtain inventory at cost from its sister companies, including Urban Outfitters, Anthropologie and Free People. Those products make up around 45% of its current inventory, according to Wells Fargo analysts. In Urban Outfitters' latest earnings, Nuuly's net sales were $124.4 million — an almost 60% increase year over year. The company saw a 53% increase in average active subscribers, which contributed to a 60% increase in brand revenue and added almost 400 basis points of revenue growth to Urban Outfitters' top line. 'The performance at Nuuly over the past year has fortified our confidence that our business model is strong, and the rental market opportunity is very large,' Urban Outfitters COO Frank Conforti said on a first quarter 2026 earnings call with analysts. 'We are thrilled that Nuuly now appears to be leading the industry with an opportunity to continue to see significant growth. Based on our current plans, we believe Nuuly could deliver a healthy double-digit revenue and profit growth in the second quarter.' Nuuly's revenue surge comes as the apparel rental site sets its sights on a high sales goal. After turning a profit during its last fiscal year, Nuuly President Dave Hayne said the company aims to reach $500 million in sales this year, a milestone he called 'an achievable goal.' Urban Outfitters also recently expanded the brand's fulfillment capacity. Last year, the company opened a 600,000-square-foot fulfillment center for Nuuly in Raymore, Missouri. The facility includes full laundering and clothing alteration capabilities and was expected to provide Nuuly with the capacity to triple its active subscriber base. Competitor Rent the Runway recently reported that Q1 revenue fell 7.2% year over year to $69.6 million. Its average active subscribers dipped 2% from the year-ago quarter to 135,896. Nuuly was launched in 2019 and offers 25,000 styles from over 500 brands and currently has around 380,000 subscribers. Recommended Reading SKU'd: Balenciaga is ready to dress you for the apocalypse Sign in to access your portfolio
