S&P 500 Drops JC Penney From Index, Replaces with Allegion LM Otero / Associated Press Shoppers walk in a parking lot outside of a JCPenney story in Plano, Texas. J.C. Penney Co. is reporting a bigger-than-expected loss and plummeting sales, as its customers continue to be turned off by a new pricing plan that gets rid of hundreds of sales in favor of every day lower prices. Standard & Poor is dropping JC Penney from its S&P 500 Index and replacing the troubled retailer with door lock company Allegion. The department store retailer's plummeting market value, which fell 37% this year to $2.7 billion, makes "more representative of the mid cap market," S&P said in a statement. The change will take place after the close of trading on Nov. 29, moving the residential and commercial lock company Allegion into JC Penney's place. The Texas-based company has faced staggering quarterly losses over the past year, its worst sales record in two decades, with shares falling 55 percent this year.