J.C. Penney to shutter 4 stores within upcoming months
Gossip Galore:
- Get ready to wave goodbye to four J.C. Penney stores scattered across the nation by September 22. The shops in question are the anchors at the Shoppes at Bel Air, Mobile, Alabama, Sikes Senter, Wichita Falls, Texas, Elm Plaza, Waterville, Maine, and the J.C. Penney at Westfield Annapolis Mall, Annapolis, Maryland, which will shutter in 2025.
- The department store has recently shuttered a location in Wayne, New Jersey, but has opened a new one at Brookfield-owned Willowbrook Mall across the street. Disappointingly, they've been unable to find suitable locations for the four new closures.
- J.C. Penney is currently navigating a transformation, much like Macy's. But unlike the latter, they're taking things slow. CEO David Simon of Simon Property Group recently stated that J.C. Penney isn't likely to close many stores and might even benefit from opening new ones.
- With 663 stores across the United States, most of which anchor malls, J.C. Penney hasn't experimented much with off-mall locations. Contrastingly, Macy's earlier this year announced plans to close 150 stores over the next three years and focus on revamping 50.
- Empty anchor stores can be disastrous for malls, as they drive down foot traffic and often trigger lease clauses that result in rent breaks or tenant departures. However, neither Brookfield nor Simon, who owned J.C. Penney post-bankruptcy, own the malls losing an anchor this year and next.
- In its latest quarter, J.C. Penney recorded a 5.9% drop in net sales year over year, as well as a decline in net income and consolidated EBITDA. But fear not, loyal shoppers! You can still browse JCPenney.com or visit other JCPenney stores in the area.
- sources: 1: JCPenney Announces Store Closures 2: JCPenney Partners with Sparc Group 3: Top Department Stores for Displaced JCPenney Customers 4: JCPenney's Q2 2022 Earnings Report
The Juicy Scoop:
- J.C. Penney is in the midst of a makeover, as they shutter four stores and aim to improve their stores, much like Macy's. Unlike Macy's, though, they're taking their time and focusing on enhancing their existing mall-based strategy.
- Simon Property Group CEO David Simon, however, believes that J.C. Penney might benefit from opening new stores. With 663 stores still under their belt, the retailer hasn't dabbled much in off-mall locations like other retailers have.
- Conversely, Macy's announced an ambitious plan to close 150 stores in the next three years, focusing on remodeling 50. They've also expanded their footprint by increasing the number of smaller stores off the mall.
- When J.C. Penney went bankrupt in 2020, many believed that Brookfield Properties and Simon Property Group, who purchased the company, hoped to keep those spaces occupied to avoid empty anchor stores and the subsequent rent breaks or tenant departures.
- J.C. Penney's Q2 2022 earnings report showed a 5.9% drop in net sales year over year, a decrease in net income, and a decline in consolidated EBITDA. However, they're still planning to welcome customers at their other stores and on JCPenney.com.
- Sources: 1: Simon Property Group CEO Discusses JCPenney 2: JCPenney's Bankruptcy Sale to Simon and Brookfield 3: JCPenney Q2 2022 Earnings Report
- J.C. Penney's transformation is reminiscent of Macy's, with four stores scheduled for closure by September 2025, yet unlike Macy's, they're proceeding cautiously.
- Despite closures in some locations, J.C. Penney has opened a new store at Willowbrook Mall, signifying their ongoing presence in the retail industry.
- The remaining 663 J.C. Penney stores are primarily mall-based, leaving little exploration in off-mall locations, a strategy contrasting Macy's Focus.
- Macy's, on the other hand, plans to close 150 stores and redesign 50 over the next three years, and has also ventured into smaller stores off the mall.
- When J.C. Penney went bankrupt in 2020, it was believed that its new owners, Brookfield Properties and Simon Property Group, aimed to keep the spaces occupied to prevent empty anchor stores and subsequent rent breaks or departures.
- J.C. Penney's Q2 2022 earnings report displayed a 5.9% decrease in net sales year over year, lower net income, and a decline in consolidated EBITDA, yet they continue to serve customers at their other stores and on JCPenney.com.
