The shutdown of a JCPenney store is nearly complete, as shoppers recently saw a new sign indicating its closure.
This development follows ongoing financial difficulties for the retail chain, which began struggling significantly in 2020.
JCPenney to Close Historic Mobile Store
National retailer JCPenney is set to close its store in Mobile. Photos of a "closing" sign hanging at the front of the store spread across social media this past Friday.
AOL reports that the store, located at the Shoppes at Bel Air, has been a key part of the mall since 1974, contributing to its expansion and helping it become the largest mall in the state at that time. This status was held until the Riverchase Galleria was built.
A spokesperson for the company confirmed that the store is scheduled to close by September 22.
According to Retail Drive, JCPenney has announced that some of its stores will be closing due to an inability to continue with the current lease terms and the challenge of finding suitable new locations.
The company expressed gratitude towards its dedicated staff and loyal customers who have supported these stores over the years. JCPenney emphasized its ongoing commitment to providing value for America's diverse, working families and encouraged customers to visit their other locations or shop online at JCPenney's website.
Financially, J.C. Penney has faced a challenging period. In its most recent quarterly report, the company saw a 5.9% drop in net sales year-over-year, totaling $2.3 billion. Net income for the quarter decreased by 8.9% to $41 million.
For 2023, excluding credit card sales, net sales fell by 8.9% to $6.9 billion, while net income drastically declined by 86.4% from the previous year's $221 million. The company's consolidated EBITDA also significantly reduced, dropping 39.3% to $316 million.
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Mobile Reacts to JCPenney Store Closure
Shoppers in Mobile have expressed their shock and nostalgia on Facebook upon hearing that their local JCPenney store is closing. One former employee reminisced about working there 46 years ago, finding it hard to believe it's shutting down.
Another shopper shared a sentimental memory of shopping there with their grandmother, describing the news as "heartbreaking."
A third commenter pointed out the broader trend of online shopping taking over, suggesting that the future might only hold warehouses and delivery drones.
Despite the closure in Mobile, The U.S. Sun reports that JCPenney enthusiasts in Alabama still have options, with stores remaining open in several other cities, including Alabaster, Dothan, Fultondale, Hoover, Montgomery, Oxford, Prattville, Tuscaloosa, and Trussville.
The Mobile store is one of four JCPenney locations slated for closure, marking what some shoppers have called "the end of an era." Alongside Mobile, stores in Wichita Falls, Texas, and Waterville, Maine, will close this summer, with the Annapolis, Maryland, location set to follow next year.
Liquidation sales have begun at the store in Sikes Senter Mall in Wichita, with similar sales planned for the other closing stores.
After filing for bankruptcy in May 2020 amid the pandemic, JCPenney is closing more stores.
Initially having nearly 850 stores, the company shuttered over 200 and restructured its debt before being acquired by Brookfield Asset Management and Simon Property Group for $800 million.
The deal aimed to prevent the closure of key stores in Simon-owned malls. However, none of the four locations currently set to close are in these malls.
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