J.C. Penney to close Tosa operation, cut 670 jobs

J.C. Penney Corp. will close its huge Wauwatosa distribution center, cutting 670 jobs there.

The retailer will begin shutting down the 2 million-square-foot, half-milelong warehouse and customer service operation this summer, a company spokesman said Tuesday by email.

The move comes as Penney reduces its supply chain network, which “is oversized relative to its national store footprint,” spokesman Carter English said.

Penney is among department store chains that have been closing stores as the sector struggles with increased competition from online and discount retailers.

Penney will shift the Wauwatosa work to facilities in Lenexa, Kan., and Columbus, Ohio.

The Wauwatosa facility is on W. Burleigh St., just west of Highway 45. The company will close the distribution center on July 1 and the customer care center on Sept. 1.

Eligible employees will receive separation benefits, including outplacement support and career training, English said.

Penney closed 139 stores from January through October of last year, leaving the Plano, Texas-based retailer with 874 stores.

For the nine months ended Oct. 28, the company lost $370 million.

Except for 2016, when it earned $1 million, Penney has lost money on its continuing operations every year since 2011. The total losses over the six years exceed $3.3 billion.

The Penney warehouse was built in 1963. The 2017 assessment places the building’s market value at more than $24 million.