Lifestyle

JCPenney Plans to Close About 140 Stores in the Next Few Months

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Tony Maples Photography

 

Department store chain JCPenney is not excelling in the midst of online megastores and other “niche” department retailers. The company announced they will close around 130 – 140 stores out of 1,014, which is around 14 percent of their locations. ABC 13 writes that the company will offer roughly 6,000 employees an early retirement and close down two distribution centers as well.

As USA Today points out, JCPenney isn’t the only department store having trouble. “Macy’s recently announced plans to cut 100 of its 675 full-line stores. Sears said it plans to close 150 stores, including 108 Kmart locations, leaving it with more than 1,300,” they write.

JCPenney says that they’re simply correcting their over-saturation. Their sales fell 0.7 percent in the final quarter last year despite the shop-heavy holiday season. They know that millennials aren’t big department store shoppers, and that “the department store concept is being put under severe pressure by multiple prevailing trends. Other channels are simply better suited to drive those consumer promises,” says retail consultant Greg Portell.

To move forward, JCPenney is trying regional pricing in some of their stores and evolving their selection of non-apparel items. For example, the women’s shoe section will become “open sell,” meaning buyers will be able to grab the items from shelves to try on the product instead of asking an employee to find their size in the stock room.