Three years after launching the experiment to re-enter the categories, JCPenney is getting out of major appliances, home goods and furniture effective Feb. 28.
The company said it decided to exit the categories “in an effort to meet customer expectations, improve its financial performance and drive profitable growth.” The re-introduction of appliances came under former embattled CEO Marvin Ellison.
Furniture will only be available on jcp.com and in select Puerto Rico stores. JCPenney will finalize new layout options that will vary by store including the reduction of store space previously dedicated to appliance and furniture showrooms to maximize efficiencies and reduce inventory.
JCPenney re-entered the appliance category after customer data showed most of its shoppers were homeowners searching for major appliances on jcp.com, with subsequent research indicating they thought the move made sense.
In 2017, JCPenney announced the closure of 140 stores, saving $200 million. The decision to pull the large item categories comes as JCPenney is expected to close more stores and redesign remaining ones under new CEO Jill Soltau, according to USA Today.
CNN reported that JCPenney’s stock fell 2% on Wednesday on the news. It had been recovering this year after falling below $1 for the first time in its 90-year existence in December. The company is $4 billion in debt with a junk bond credit rating as it burns through cash, according to CNN.