Department stores have been a stapple of the American shopping landscape for decades, and although the y have managed to withstand the test of time, the pandemic was not kind for them and was the final nail on their coffin, leading many to close most of their physical locations. While some of them seem to be hanging on by their fingernails, others like JCPenney are beginning the slow and arduous process of closing down less profitable locations to try to stay afloat.
For now, JCPenney has announced that they will close seven stores, at least according to the Worker Adjustment and Retraining Notification (WARN) that were filed this month, and one more store is on he chopping block but seems to have escaped this particular round of closings. The seven stores mentioned on the WARN will close permanently on Sunday 25 May.
The seven JCPenney stores that are closing and the plans for the future
The company really has been a cornerstone of the American shopping experience since it was founded in 1902. Its reach was extensive, with it now boasting over 650 locations in the United States and Puerto Rico making it one of the biggest department stores in the country. Despite its history and the love that many clients have for it, they have not managed to transition to the 21st century as well as they would have liked.
The rise of online shopping meant that less people were going in store to purchase things, which negated the need for all the big spaces they owned or were renting, and while they adapted to online shopping they did so a little too late and many consumers prefer to just go to the original retailer or manufacturer rather than shop online at a department store website, as the prices are often lower and there are more options to choose from.
But COVID really was the final nail on their coffin, JCPenney filed for Chapter 11 Bankruptcy in Texas in May 2020 due to the issues caused by the early months of the pandemic, which were brutal. In order to keep operating, they entered a restructuring support agreement (RSA) with lenders, which has worked to an extent, but also meant that they have had to close 200 locations over the past five years to make the agreement work.
Since the company was doing fine, many were surprised by this latest round of closures, which, while it has not been officially explained, appears to be influenced by expiring long-term leases and other operational factors rather than financial difficulties as such. The company has been quick to state stated that these closures are not tied to its recent merger with the SPARC Group at the beginning of the year.
List of stores that will be closing on May 25
- San Bruno, California (The Shops at Tanforan)
- Denver, Colorado (The Shops At Northfield)
- Pocatello, Idaho (Pine Ridge Mall)
- Topeka, Kansas (West Ridge Mall)
- Newington, New Hampshire (Fox Run Mall)
- Asheville, North Carolina (Asheville Mall)
- Charleston, West Virginia (Charleston Town Center)
While there was another store on this list at the beginning of the year, the Westfield Annapolis Mall in Maryland, which was set to close on May 16, leaving 74 employees out of a job, the store seems to have gotten a second chance, although it is now slated to close on August 31.
JCPenney is expected to continue closing stores, with several property sales anticipated later in the year. The company is one of several traditional department stores making such adjustments, Macy’s and Kohl’s have also taken similar steps in response to shifting consumer behavior and retail trends.