1. News
February 27, 2017

JC Penney to close around 140 stores

Apparel and home furnishings retailer JC Penney Company is set to optimise its national retail operations with the closure of up to 140 outlets.

Apparel and home furnishings retailer JC Penney Company is set to optimise its national retail operations with the closure of up to 140 outlets.

The retailer also plans to close two distribution facilities over the next few months.

These decisions will help the retailer to align its bricks-and-mortar presence with its omnichannel network.

JC Penney chairman and chief executive officer Marvin Ellison said: “We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers.

"Maintaining a large store base gives us a competitive advantage in the evolving retail landscape since our physical stores are a destination for personalised beauty offerings, a broad array of special sizes, affordable private brands and quality home goods and services."

“We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers."

The supply facility in Buena Park, California, will be sold, while a distribution centre located in Lakeland, Florida, will be closed in early June and its operations will be transferred to the logistics facility in Atlanta.

The retailer intends to provide the associates, who will be impacted by the closures, with separation benefits.  

The total store closures represent approximately 13-14 % of the company’s current store portfolio, less than 5% of total annual sales, less than 2% of EBITDA and 0% of net income.

It is estimated that almost all the impacted stores will be closed in the second quarter of this year.


Image: A JC Penny store: Photo: courtesy of JC Penney.