J.C. Penney has announced plans to close four of its store locations across multiple states in the upcoming months. The department store chain communicated via email that these closures are set to occur before September 22. Affected locations include the Shoppes at Bel Air in Mobile, Alabama; Sikes Senter in Wichita Falls, Texas; Elm Plaza in Waterville, Maine; and a delayed closure in 2025 at the Westfield Annapolis Mall in Annapolis, Maryland.
New Jersey Closure and Opening Previously Announced
This announcement follows a recent closure at the Wayne Towne Center in Wayne, New Jersey, although J.C. Penney simultaneously opened a new store at the Willowbrook Mall, owned by Brookfield, directly across the street. For the locations facing closure, the company cited challenges in maintaining lease terms and finding suitable new locations within the market.
In a broader context, J.C. Penney is amidst a turnaround effort, contrasting with Macy’s more aggressive strategy which includes shutting 150 stores over three years and revamping 50 others. David Simon, CEO of Simon Property Group, which co-owns J.C. Penney with Brookfield Properties, mentioned last month that the chain is not likely to close many stores, suggesting potential for expansion.
What is the future of J.C. Penny?
The strategy reflects a cautious approach as the retailer has not ventured significantly into off-mall locations, unlike its competitors. The recent financial performance indicates a downturn, with net sales in the latest quarter down 5.9% year over year and net income falling 8.9%.
J.C. Penney’s store closures are part of an ongoing adjustment to the retail environment, influenced by changing consumer preferences and the economic landscape. The company expressed gratitude to its associates and customers of the affected stores and invited them to visit other locations or shop online.