JCPenney, one of the most popular department store chains in the country, is closing down a total of 8 locations due to various reasons. The company has filed for Chapter 11 bankruptcy in the past, hinting at its financial struggles. The decision of closures has been made as an attempt to restructure its business and adjust to changing consumer shopping habits. If you are someone who wants to know exactly when and which locations are shutting down, this article is for you. It brings you everything you need to know about the JCPenney stores closing.
JCPenney Store Closing: Which Stores Are Closing And When?
According to what the JCPenney spokesperson said about the closures, the company is expected to close around 8 locations by mid-2025. The following is a list of the 8 JCPenney locations that are going to shut down this year.
- California: The Shops at Tanforan, San Bruno.
- Colorado: The Shops at Northfield, Denver.
- Idaho: Pine Ridge Mall, Pocatello.
- Kansas: West Ridge Mall, Topeka
- Maryland: Annapolis Mall, Annapolis
- North Carolina: Asheville Mall, Asheville
- New Hampshire: Mall at Fox Run, Newington
- New Virginia: Charleston Town Center, Charleston.
Why Are The JCPenney Stores Closing?
The spokesperson from JCPenney did not really specify any particular reason why the stores are closing. However, they did mention how individual store closures occur due to expiring lease agreements, market changes, or other factors. The company filed for Chapter 11 bankruptcy in the month of May 2020. It has already closed around 200 stores during the reconstruction. Consumer preferences are also shifting, leaning more towards online shopping. Foot traffic in physical stores and malls has witnessed a significant fall. This has led the company to focus on the stores offering the highest profits. Many stores that are closing are located in malls. This means expiring lease contracts can also be a reason for the closures.
How Will The Store Closures Affect The Industry?
JCPenney is not the only departmental chain that is shutting down locations this year. The retail industry already seems like it is in shambles. According to Coresight Research, a total of 15,000 stores in America are going to close this year. This number is even double the number of stores that closed in 2024, which is 7,325. Many big names in the retail industry, including Macy’s, Kohl’s, Big Lots, and Party City, are also going through similar challenges, which have led to multiple store closures across the country.
Are the Store Closures related to JCPenney’s merger with SPARC?
The company officials have cleared the mist on the confusion about the sudden store closures at 8 locations. They have specifically mentioned that the store closure is not around the clock due to the merger with SPARC Group. Moreover, the collaboration between the two companies will strengthen their business and sales strategy. The SPARC Group is the supervisor of many renowned companies, and a merger will open new opportunities for JCPenney.
Moreover, the two companies have come to the same page to form a new organization for their project. The new organization, Catalyst Brands, was finalized in January and will work on its latest project. They are planning their strategy to create a portfolio of six retail banners that will revolutionize their revenue and business position in the market.
How has digitalization impacted the retail sales from JCPenney stores?
Digitalization has been an important part of our lives, especially after COVID-19, due to which our routine habits have changed. Customers want to enjoy services while they are at home, sitting on their couch, watching a horror movie. The munchies you see? Who’d go out in the scorching sun when you can just sit and swipe the order button on your phone?
This shift in preferences affected businesses and their sales, due to which many companies became bankrupt. This is what happened with JCPenney, due to which they decided to apply for Chapter 11 Bankruptcy. By closing their stores, they are now focusing on e-commercialization by developing their online sales website. Additionally, they have searched for opportunities and extensions like JCPenney Beauty, which accelerated their growth.
What are the goals of JCPenney after the store closure?
JCPenney is exploring its options and opportunities to expand a bigger network through online business. While digitalization has shown its darker side, using it as its strength to outgrow other companies is called ‘sportsmanship’. JCPenney is a name people turn to when they want quality products without poking a hole in their pockets. Even after the lows and highs it has faced, people still trust its quality and products.
Thus, they aim to bring their customers back by using their reasonable prices and digitalization, as their front-line warriors. Additionally, its rewards, discounts, and sales will forever attract customers, either in stores or online.
What To Expect In The Future?
In the month of January 2025, JCPenney officially announced a partnership with Forever 21, creating a new company called Catalyst Brands. This merger also includes several other brands like Brooks Brothers, Aéropostale, Lucky Brand, Nautica, and Eddie Bauer. The newly formed company is expected to open around 1,800 store locations and hire 60,000 employees. The company did not officially announce mass closures of stores, but said individual store closures will continue according to the brand’s needs. Its future also depends on how the company will balance physical stores and e-commerce growth.
