J.C. Penney to shutter 6 stores by end of April
today Jan 21, 2020
American department store operator J.C. Penney Company, Inc. has revealed that it will be closing six locations at the start of this year as part of a “standard annual review.”
As first reported by The Dallas Morning News and confirmed to FashionNetwork.com by a spokesperson from the company, the J.C. Penney stores set to close are in the following locations: Southgate Mall in Missoula, Montana; Myrtle Beach Mall in Myrtle Beach, South Carolina; Chapel Hill Mall in Akron, Ohio; North Hills Shopping Center in Raleigh, North Carlona; Tulsa Promenade in Tulsa, Oklahoma, and Green Acres Mall in Valley Stream, New York.
All of the stores have an effective closing date of April 24, 2020.
The spokesperson said that the “decision is the result of a careful and ongoing review of our store portfolio,” further explaining, “it’s never easy to close a store, however, we feel this is a necessary business decision.”
The Plano, Texas-based company is in the midst of a turnaround being led by CEO Jill Soltau. The process has seen the retailer pull out of the major appliance and in-store furniture categories in order to refocus on its higher-margin apparel business.
Soltau has, however, stated that she does not intend to shutter a large number of stores all at once as part of her recovery plans for the company.
J.C. Penney currently operates around 850 locations, down from over 1,100 in 2010. Last year the retailer announced the closures of 18 department stores and nine furniture stores.
The company, which has not seen a quarterly sales gain since the end of 2017, reported a 7.5% decline in its comparable-store sales over the holiday period earlier this month but maintained its previously reported guidance for the full fiscal year 2019.
J.C. Penney continues to expect to see annual comparable-store sales decrease between 7% and 8%, while adjusted EBITDA is predicted to be over $475 million.
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