JC Penney has confirmed it will close at least four major stores this year and into the next.
The company announced last week that these closures are part of a plan to fix its financial problems and improve its remaining 663 stores.
Four State JC Penney Store Closures
The four JC Penney stores set to close are considered key parts of the malls they are located in. Three of these stores are expected to shut down by September 22, 2024, while the fourth will close at an unspecified date in 2025, a spokesperson for JC Penney disclosed to Retail Dive.
These closures are spread across four different states. The locations are Elm Plaza in Waterville, Maine; Shoppes at Bel Air in Mobile, Alabama; and Sikes Senter in Wichita Falls, Texas, all scheduled for closure in September 2024.
The fourth store, located at Westfield Annapolis Mall in Annapolis, Maryland, is slated to close sometime in 2025.
In recent news, Franchise Herald reports that JC Penney has declared that it will be closing some of its stores due to difficulties in renewing current leases and finding new suitable locations.
The company extended its gratitude to the dedicated staff and loyal customers who have supported these stores over the years.
JC Penney reiterated its commitment to continue providing value by making "every dollar count" for America's diverse, working families. Customers are encouraged to visit other JC Penney locations or shop on their online platform.
Financially, JCPenney has been experiencing tough times. According to its latest quarterly report, the company witnessed a 5.9% decrease in net sales from the previous year, bringing in $2.3 billion. Additionally, net income fell by 8.9% to $41 million.
For 2023, excluding revenue from credit card sales, net sales declined by 8.9% to $6.9 billion. Net income dramatically fell 86.4% from last year's $221 million. The company's consolidated EBITDA also significantly reduced, dropping 39.3% to $316 million.
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JC Penney's Cautious Turnaround Strategy
JC Penney is currently in a phase of reinvention and upgrading its stores, taking a more measured approach compared to Macy's. Unlike Macy's aggressive strategy of closing 150 stores over the next three years and focusing on revamping 50 locations, JC Penney is progressing slowly.
David Simon, CEO of Simon Property Group, mentioned last month that JC Penney is unlikely to close many of its 663 stores, primarily serving as mall anchors. He suggested that the company could even benefit from opening new stores. Unlike many retailers, JCPenney has not ventured significantly into locations outside of malls.
On the other hand, Macy's is reducing its number of stores and expanding its presence in smaller, non-mall locations. The performance of its revamped stores will be a key indicator for the future of its remaining 350 locations.
According to The U.S. Sun, JC Penney faced significant challenges during the coronavirus pandemic, filing for bankruptcy in 2020 when it operated over 850 stores. Between 2020 and 2021, the company closed more than 100 stores.
However, after being acquired by Brookfield Properties and Simon Property Group in September 2020, it was not expected that many of JC Penney's mall-anchor locations would close, given their role in driving customer traffic to the stores and the malls.
Simon also reaffirmed in May that JC Penney might soon expand by opening new store locations, indicating a potential growth phase for the retailer.
Related Article: JC Penney's Final Days: Closing Signs Go Up, Confirming Shutdown Plans
