According to an article in the Dallas Morning News J.C. Penney Co. reported a 51 percent decline in fourth quarter earnings as it joins the ranks of other retailers facing loses. Many retailers have already filed for bankruptcy and those who have avoided bankruptcy have been hit by massive job losses , store closings and restructuring that has sent a tidal wave through the retail industry and its suppliers.
Unfortunately, our economy has become deeply dependent upon the consumption of larger and larger quantities of products by the population who are now spending less because of foreclosures, job losses and personal bankruptcy. This contraction in spending will send many retailers the route of Circuit City with bankruptcy completely decimating companies and hitting the economy with permanent or at least long-term job losses.
In the article said:
"Throughout the year, we took steps to significantly reduce our inventories and operating expenses in order to withstand the impact of the economic conditions," said Myron "Mike" Ullman, Penney's chairman and chief executive officer.
The steps that J.C. Penny has been taking include implementing job losses across the board and we can expect that more retailers will follow with even more job losses as the economy continues to sour.