J.C. Penney to Close Nearly 140 Stores

J.C. Penney will close approximately 130-140 stores as well as two distribution facilities over the next several months.

April 6, 2018

Closures will represent less than 5 percent of the retailer’s total annual sales.

According to the company, the closures will help align its brick-and-mortar presence with its omni-channel network.

The total store closures will represent roughly 13 to 14 percent of the company’s current store portfolio, less than 5 percent of total annual sales, less than 2 percent of earnings before interest tax, depreciation and amortization, and 0 percent of net income.

The stores identified for closure would either require significant capital to achieve the company’s new brand standard or are minimally cash flow positive today relative to J.C. Penney’s overall consolidated average.

The impacted stores are expected to close in the second quarter of 2017.

"We believe closing stores will also allow us to adjust our business to effectively compete against the growing threat of online retailers,” says Marvin Ellison, chairman and chief executive officer, J.C. Penney. “Maintaining

a large store base gives us a competitive advantage in the evolving retail landscape since our physical stores are a destination for personalized beauty offerings, a broad array of special sizes, affordable private brands and quality home goods and services. It is essential to retain those locations that present the best expression of the J.C. Penney brand and function as a seamless extension of the omni-channel experience through online order fulfillment, same-day pick up, exchanges and returns.”

J.C. Penney will release a full list of planned closures in mid-March, pending notification of all affected personnel.