close video Pressure from Shein, Temu contributing to retail closure accelerations
Coresight Research estimates there will be another wave of retail closures in 2025 as legacy companies face relentless competition.
JCPenney is planning to close a "handful" of stores over the coming months as it struggles to keep pace with rapidly changing market conditions.
"While we do not have plans to significantly reduce our store count, we expect a handful of JCPenney stores to close by mid-year," a spokesperson for the company told FOX Business.
Eight locations across as many states are closing, with the company citing reasons such as "expiring lease agreements" and "market changes."
According to SB360 Capital Partners, which handles liquidation sales, one store in each of the following states is shutting down: California, Colorado, Idaho, Kansas, Maryland, North Carolina, New Hampshire and West Virginia.
JCPENNEY CEO SAYS COMPANY FOCUSED ON AMERICAN WORKING FAMILIES AS ECONOMY WEIGHS ON CONSUMERS' WALLETS
The company said the closures weren't related to its merger with SPARC Group, the parent of Aéropostale, Brooks Brothers, Eddie Bauer, Lucky Brand and Nautica, that was announced last month.
In January, the companies agreed to combine to form a new organization, Catalyst Brands, where they plan to create a portfolio of six retail banners.
A JCPenney department store at Fashion Valley, an upscale shopping mall on Dec. 13, 2024, in San Diego, California. (Kevin Carter/Getty Images) / Getty Images)
Prior to the merger, JCPenney contended with slowing foot traffic and lackluster sales for years, causing it to file for bankruptcy protection at the height of the pandemic. It emerged from bankruptcy in 2020 as a private company after being acquired by Simon Property Group and Brookfield Asset Management Inc.
Under the rescue deal, JCPenney agreed to permanently close nearly a third of its 846 stores as part of its restructuring. Its leadership also tried to position the company as a place for working families so it could boost traffic.
A JCPenney store that is in the process of closing after the department store chain filed for Chapter 11 bankruptcy protection is seen at Fashion Square Mall. (Paul Hennessy/SOPA Images/LightRocket via Getty Images) / Getty Images)
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JCPenney CEO Marc Rosen told FOX Business in 2023 that the company had been working to revamp its product offering, making sure it's a cheaper alternative to other department stores, to boost customer frequency. It also announced that it was infusing more than $1 billion into the business to enhance its store portfolio.
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