OPERATIONS

Report: J.C. Penney to close a Wisconsin distribution center

BY Deena M. Amato-McCoy

A warehouse closure will help a department store chain streamline what it calls an “oversized supply chain” network.

J.C. Penney will close one of its distribution centers in Wauwatosa, Wisconsin, a move that will eliminate 670 jobs, according to CNBC.

The 2 million sq. ft. facility (equivalent to a half-mile in distance) is home to a warehouse and customer service operation. The company will close the distribution center on July 1, and the customer care center on Sept. 1, according to the Milwaukee Journal Sentinel.

The department store chain will redirect operations from the Wauwatosa location to other facilities in Lenexa, Kansas, and Columbus, Ohio. Meanwhile, eligible associates will qualify for separation benefits, including outplacement support and career training classes, according to CNBC.

The decision is part of J.C. Penney’s effort to streamline an “over-sized” supply chain network — at least in comparison to the department store chain’s overall footprint. Overall, the closure coincides with the retailer’s ongoing effort “to align our supply chain network and customer care operations with the future needs” of Penney, a company spokesman said in the report.

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