AN iconic department store chain is permanently shutting off the lights at seven stores following its wave of struggles, including a Chapter 11 bankruptcy filing.
As JCPenney winds down operations at the handful of locations across the country, shoppers can get their hands on sales up to 90% off before the final May 25 deadline.
Macroeconomic pressures have hit the retail industry hard, and even massive department stores like JCPenney are not immune.
The company – once a leading force in the American retail landscape – has faced a series of challenges, including a bankruptcy filing in 2020 pushed by the pandemic and slow decline over the previous two decades.
JCPenney has shuttered 200 US stores in the wake of its bankruptcy filing, and a handful more are slated for the same fate.
At least seven locations are set to close on or before May 25, impacting customers in seven states: California, Colorado, Idaho, Kansas, New Hampshire, North Carolina, and West Virginia.
First flagged for closure in February, the locations are hosting huge clearance sales before they shut down for good.
JCPenney stores closing on May 25
- San Bruno, CA – The Shops at Tanforan
- Denver, CO – The Shops at Northfield
- Pocatello, ID – Pine Ridge Mall
- Topeka, KS – West Ridge Mall
- Newington, NH – Fox Run Mall
- Asheville, NC – Asheville Mall
- Charleston, WV – Charleston Town Center
The impending closures are not related to the department store chain’s financial troubles, according to a JCPenney spokesperson.
“The decision to close a store is never an easy one, but isolated closures do happen from time to time due to expiring lease agreements, market changes, or other factors,” they said.
Regardless, retail experts are hesitant about JCPenney’s ability to successfully emerge from the challenges presented by the modern retail industry.
“JCPenney is midway through a reinvention,” said Neil Saunders, retail analyst at GlobalData.
“There are some signs of success, but they’re patchy. The challenge is pulling them together to drive growth.”
DEALS FOR DAYS
JCPenney fans are running out of time to get their hands on the chain’s closing down sales, which end on May 25.
Shoppers have a few days left to score discounts up to 90% off, with markdowns across every department.
In the apparel section, customers can expect to see 40% to 90% off popular brands and JCPenney private labels.
Homeware products such as bedding, area rugs, and cookware will also be significantly discounted.
Select makeup and skincare items will likewise be on sale, as well as seasonal Items like summer gear, decorations, and accessories.
Consumers can get their hands on even more coupons and savings through the JCPenney mobile app and rewards program.
SHOPPING SHIFT
The closing JCPenney stores are all located inside of malls, highlighting the decline of the once-popular shopping format.
Foot traffic in malls has slowly been on the decline, with mall occupancy having dropped by 5% across two years, per Simon Property Group.
This trend has weighed down on JCPenney, as the vast majority of the chain’s stores are located within shopping malls.
Although there are some freestanding JCPenney spots, the anchor store model within malls is a core part of the company’s business strategy.
Many factors have hurt the retail industry, including the rise of e-commerce, shifting shopping habits, and rising operational costs.
As a result, many huge retailers have had to rework their strategies and their store footprints.
For example, another iconic department store has launched closing down sales as another 66 locations will shut by 2026.
Meanwhile, a struggling Kohl’s has axed its CEO as concerns for the popular retail giant grow.
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US braces for ‘45,000 store closures’
Some 45,000 bricks-and-mortar stores could close in the next five years, experts have warned.
Several major retailers have announced store closures or gone out of business altogether in recent years.
In 2023, chains such as Foot Locker announced plans to close up to 400 outlets by 2026.
While, other well-known retailers like Tuesday Morning and Mitchell Gold + Bob Williams filed for bankruptcy in 2023.
Bed Bath & Beyond has closed all of its brick-and-mortar stores and is now an online-only retailer.
The most affected retailers have been clothing, consumer electronics, sporting goods, hobby, book, music, and home furnishing stores since the start of 2019.
UBS has predicted the total number of retail stores will drop by 45k from 958k to 913k.
Despite that, the report says that certain stores should thrive while others decline.
It said retailers such as Walmart, Costco, Home Depot, and Target, could be among the winners.
