J.C. Penney was dropped from the Standard & Poor's 500 index after losing more than half of its market value this year. It is being replaced in the index by Allegion PLC, a home and business security provider, according to a statement released this Friday by S&P Dow Jones Indices which runs the S&P 500 index.

Its downward spiral began during a failed transformation under former CEO Ron Johnson, who was fired in last April after 17months on the job. Since then, the company's stock has rebounded during the last month and signs that the retailer's business is stabilizing under new Chief Executive Mike Ullman. With all that being said, it isn't enough to keep J.C. Penney in the index still as its stocks have fallen USD 10.84, or 55 percent, to USD 8.87 this year. This month, the stock has advanced 18 percent thismonth after falling to USD 6.42 on Oct. 21.

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

CEO Johnson's plan includes getting rid of coupons and most sales in favor for regular everyday lowprices, bringing in hip brands and remaking outdated stores.