JCPENNEY has confirmed the axing of at least four anchor locations this year and into the next.
The company announced the closings last week as part of a process to turn around its financial woes and upgrade its remaining 663 stores.
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All four closing JCPenney locations are staples in the malls in which they are housed.
Three will close sometime before September 22, 2024, with a fourth shutting its doors on an undetermined date in 2025, according to what a spokesperson for JCPenney told Retail Dive.
The stores also span four separate states and are listed as follows.
- Elm Plaza, Waterville, Maine (September 2024)
- Shoppes at Bel Air, Mobile, Alabama ( September 2024)
- Sikes Senter, Wichita Falls, Texas (September 2024)
- Westfield Annapolis Mall, Annapolis, Maryland (TBD 2025)
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Liquidation sales are underway at some locations.
"Regretfully, we are unable to continue our current lease terms for these store locations and have been unable to find suitable locations in the market," JCPenney said of the closures.
"We are grateful to our dedicated associates and the loyal customers who have shopped at these locations throughout the years."
JCPenney added that it would continue to "make every dollar count for America's diverse, working families" at other brick-and-mortar locations and online.
The company has thrived off its mall-based stores in the past and hasn't dipped into off-mall locations as much as some competitors.
SWEET SAVE
JCPenney filed for bankruptcy in 2020, citing struggles from the coronavirus pandemic, like many retailers and restaurants.
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It had over 850 locations at the time of the Chapter 11 filing, with well over 100 shutdowns between 2020 and 2021.
The chain was ultimately bought out by Brookfield Properties and Simon Property Group in September of that year.
It was expected that not many of JCPenney's anchor mall locations would shut down after the companies acquired it.
They are typically beneficial for the retailer and mall alike with the amount of customer traffic in the building.
Simon Property Group CEO David Simon also said in May that JCPenney would likely not close many stores and may open new locations soon.
Why are JCPenney stores closing?
JCPenney has hit the headlines after it emerged that the chain will close a number of stores within the coming months.
The once-booming department store chain has faced declining sales and has struggled to reel in new customers.
The emergence of online shopping hit brick-and-mortar stores and shopping malls.
When the Covid-19 pandemic occurred, retailers, including JCPenney were dealt another blow which proved fatal for many.
The retailer's financial struggles came to a head in May 2020 when it filed for bankruptcy protection with around $4 million in debt.
The subsequent restructuring saw a slew of closures as the retailer embarked on a new strategy for sustainable growth.
175 stores shuttered nationwide between 2020 and 2021.
However, even after being bought out, the company is continuing to struggle with sales especially as consumers tighten their belts due to the high cost of living and inflation.
JCPenney's latest Q4 net sales dropped to $2.3 billion, a 5.9% year-over-year decline while net income fell by 8.9% to $41 million.
OTHER CLOSURES
Still, there have mostly been only closures.
In May, another JCPenney in Ukiah, California, shut down for good, per The Press Democrat.
A Waterford, Connecticut, location also closed permanently.
JCPenney saw declining Q4 net sales at $2.3 billion, marking a 5.9% decline year-to-year.
Data collected by the Securities and Exchange Commission also reported a yearly 8.9% decline in net sales in 2023 to $6.9 billion.
NOT DONE YET
Still, the company remains hopeful and predicts its customers will return to JCPenney stores in search of value with current inflation rates.
"Customers continue to deal with economic uncertainty and are looking for value more than ever," a company spokesperson told Retail Dive.
"We remain optimistic about a second-half recovery and are well-positioned to continue delivering value to our customers throughout the year (2024) as that happens."
Some JCPenney competitors are enduring more significant struggles.
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Clothing retailer Express filed for bankruptcy in April with plans for at least 100 store closures.
Rue21 also filed for bankruptcy this year, selling its assets and closing its US stores.
