Department stores were already struggling to weather the rise of online shopping, but the pandemic has put the final nail in the coffin for many major retailers. This week, one of the oldest and largest stores to crack under the pressure of the pandemic, JCPenney, announced that it will be closing a total of 165 stores by Mar. 2021. The news came shortly after the company had emerged from bankruptcy under new ownership earlier this month. Read on for more news about the stores JCPenney is closing, and for another potential closure to be concerned about, check out This Legendary Chain Is on the Verge of Bankruptcy.
Though over 150 JCPenney locations were already on the chopping block, new owners Simon Property Group and Brookfield Asset Management, Inc. announced that they will close an additional 15 stores in just over three months' time, leadership confirmed in a statement to USA Today this week.
"As part of our store optimization strategy that began in June with our financial restructuring, we have made the decision to close an additional 15 stores," JCPenney said in its statement. "These stores will begin liquidation sales later this month and will close to the public in mid to late March." JCPenney, which has been around since 1902, operated 840 brick-and-mortar locations before filing for bankruptcy in May of this year.
According to Forbes, much of JCPenney's troubles can be traced not to the current pandemic, but back to 2012, when the company came under the leadership of CEO Ron Johnson. Johnson dramatically restructured the company, including its inventory, marketing, and pricing strategy, alienating much of its core base and leading to a 24 percent sales reduction that year. This year, JCPenney's stocks fell below one dollar per share, which put it at risk of being delisted by the New York Stock Exchange.
Still, the new leadership remains optimistic that better days are ahead. "While store closure decisions are never easy, our store optimization strategy is intended to better position JCPenney to drive sustainable, profitable growth," representatives explained.
Read on for more stores like JCPenney that are closing their doors during the pandemic, and for another major store's closures, check out This Beloved Brand Is Closing All But 2 of Its U.S. Stores.
Read the original article on Best Life.
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The Children's Place
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