Mango to close 450 JCPenney shops

Spanish retailer Mango will close all 450 outlets inside JCPenney (NYSE:JCP) stores next year when its five-year deal with the department store chain ends.

This leaves Mango with just seven stores in the United States, and the company will now focus on expanding stand-alone shops in key cities such as New York and Miami, according to Reuters.

Mango signed on to open shops within JCPenney shortly after Ron Johnson joined the company as CEO and embarked on a plan to introduce new brands, attract younger shoppers, and modernize the store environment. But JCPenney saw sales plunge and subsequent management brought back discontinued brands, working to win back its old shopper.

JCPenney has turned the tide and beat analyst expectations for its third quarter financial results announced today, as comparable store sales rose 6.4 percent.

The department store chain still counts branded partnerships among its best assets, including the Sephora and Disney shops; 800 in-store hair salons that are being rebranded as InStyle salons; Modern Bride fine jewelry; and the Levi Strauss assortment.

For more:
-See this Reuters report
-Read the JCPenney financial statement

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