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J.C. Penney Gets Booted From S&P 500

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JC PENNEY
SAN BRUNO, CA - NOVEMBER 20: A sign is posted on the extrior of a J.C. Penney store on November 20, 2013 in San Bruno, California. J.C. Penney reported a third quarter loss of $489 million, or $1.94 per share compared to a loss of $123 million, or 56 cents per share one year ago. (Photo by Justin Sullivan/Getty Images) | Justin Sullivan via Getty Images

NEW YORK (AP) — J.C. Penney is getting booted from the Standard & Poor's 500 index after losing more than half of its market value this year.

The retailer is being replaced by Allegion Plc, a provider of security for homes and businesses, according to a statement released Friday by S&P Dow Jones Indices, which runs the S&P 500 index.

The retailer's downward spiral began during an ill-fated transformation under former CEO Ron Johnson, who was fired in April after 17 months on the job.

The company's stock has rebounded during the last month. There are signs that the retailer's business is stabilizing under Chief Executive Mike Ullman. However, the change isn't enough to keep J.C. Penney in the index.

J.C. Penney's stock has fallen $10.84, or 55 percent, to $8.87 this year.

The stock has advanced 18 percent this month after falling to $6.42 on Oct. 21.

Johnson's plan included getting rid of coupons and most sales in favor of everyday low prices, bringing in hip brands and remaking outdated stores. But the changes that were meant to attract younger, wealthier shoppers, wound up turning off its loyal middle-income, middle-age customers who favor sales and basic merchandise like loose-fitting khakis

J.C. Penney will join the S&P MidCap 400. The change will become effective after the stock market closes on Nov. 29.

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JC Penney to leave S&P 500 after stock decline