JCPenney: All UP locations to close

Xavier Trudeau
Mars 19, 2017

The JCPenney corporation is closing 138 stores nationwide, including seven in MI, but the Taylor location will remain open according to the company.

"We believe the relevance of our brick and mortar portfolio will be driven by the implementation of these initiatives consistently to a larger percent of our stores", Marvin Ellison, company CEO, said in the release.

In Illinois, the location in Bloomington at Eastland Mall will close, along with locations in Canton, Effingham, Macomb, Peru and Sterling. However, an email he sent to the LCEDC board and members said he had discussed the store's closing with the Broadway shopping center's owner, Eric Tiegel, and LCEDC will be working "in every way we can to find options for the facility and the community". The Company also is in the process of selling its supply chain facility in Buena Park, Calif.in an effort to monetize a lucrative real estate asset.

The closures represent about 13 percent to 14 percent of the department store operator's current store count, and less than 5 percent of total annual sales.

Some employees were offered buyouts or early retirements, while others will be offered transfers to existing stores. In fact, in 2016 approximately 75% of all online orders touched a physical store.

JCPenney stores in Escanaba, Houghton, Kingsford, Sault Ste. But it expects to save $200 million a year in payroll and other costs.

JCPenney reports in a news release that most closures are expected to occur in June of this year, and most liquidation sales will start April 17. Staples said on March 9 that it's closing 70 more of its stores, and The Limited said in January that its closing all of its retail locations. "While any actions that reduce or exclude our presence in communities across the country is always hard, it is essential that JCPenney continues to evolve in order to achieve long-term growth and profitability and deliver on shareholder value".

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